BioMed Realty Trust Inc - FORM 8-K - EX-99.2

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8-K - 8-K - BioMed Realty Trust Inc	d917319d8k.htm
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	d917319dex991.htm

Exhibit 99.2

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SUPPLEMENTAL OPERATING AND FINANCIAL DATA

MARCH 31, 2015


BioMed Realty Trust, Inc.	Corporate Communications Contact	www.biomedrealty.com
17190 Bernardo Center Drive	Rick Howe	(858) 485-9840 phone
San Diego, CA 92128	Senior Director, Corporate Communications	(858) 485-9843 fax
	richard.howe@biomedrealty.com

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TABLE OF CONTENTS

MARCH 31, 2015


	Page				Page
First Quarter Highlights		3		Debt Analysis		20	*
Investor Information		4	*	Debt Maturities		21	*
Equity Research Coverage		5		Market Summary		22	*
Financial and Operating Highlights		6	*	Property Listing		23-26	*
Guidance		7	*	Development and Redevelopment		27	*
Portfolio Summary		8	*	Capital Expenditures		28
Consolidated Balance Sheets		9		Lease Expirations		29
Consolidated Statements of Income		10		Expirations by Market		30	*
Balance Sheet / Income Statement Detail		11	*	Future Lease Commencements		31
FFO, CFFO and AFFO		12		20 Largest Tenants		32
FFO, CFFO and AFFO per Share		13		Leasing Activity		33	*
Reconciliation of EBITDA and Adjusted EBITDA		14		Leasing Data		34	*
Reconciliation of Net Operating Income		15		Square Footage Rollforward		35	*
Same Property Analysis		16	*	Acquisitions		36
Interest Expense and Coverage Ratios		17		Non-GAAP Financial Measure Definitions		37
Capital Structure		18	*	Definitions		38
Debt Summary		19

This Supplemental Operating and Financial Data package contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the life science industry or the company’s target markets; risks associated with the availability and terms of financing, the use of debt to fund acquisitions, developments and other investments, and the ability to refinance indebtedness as it comes due; failure to maintain the company’s investment grade credit ratings with the ratings agencies; failure to manage effectively the company’s growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully; reductions in asset valuations and related impairment charges; risks and uncertainties affecting property development and construction; risks associated with tax credits, grants and other subsidies to fund development activities; risks associated with downturns in foreign, domestic and local economies, changes in interest rates and foreign currency exchange rates, and volatility in the securities markets; ownership of properties outside of the United States that subject the company to different and potentially greater risks than those associated with the company’s domestic operations; risks associated with the company’s investments in loans, including borrower defaults and potential principal losses; potential liability for uninsured losses and environmental contamination; risks associated with security breaches and other disruptions to the company’s information technology networks and related systems; risks associated with the company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the company’s dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the company with the Securities and Exchange Commission, including the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

All amounts shown in this report are unaudited.

This Supplemental Operating and Financial Data package is not an offer to sell or solicitation to buy securities of BioMed Realty Trust, Inc. Any offers to sell or solicitations to buy securities of BioMed Realty Trust, Inc. shall be made only by means of a prospectus approved for that purpose.

*	New or changed page for Q1 2015 Supplement

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FIRST QUARTER HIGHLIGHTS

MARCH 31, 2015

•

Demand throughout the company’s vibrant core innovation districts generated 780,800 square feet of gross leases during the quarter, including nearly 700,000 square feet of new leases as tenant relationships were formed or expanded with Biogen at 301 Binney Street in Cambridge, Massachusetts; Penn Presbyterian Medical Center at 3737 Market Street in Philadelphia; Stanford Health Care and Advanced Cell Diagnostics at the Pacific Research Center campus in the San Francisco Bay Area; Akamai Technologies and Reed Elsevier at 50 Hampshire Street in Cambridge, Massachusetts; and Juno Therapeutics at 217th Street in the Seattle market.

•

The company recaptured 313,000 square feet of space in three buildings in Cambridge, Massachusetts by terminating certain leases with Vertex Pharmaceuticals. The company received a $14 million termination payment and immediately commenced redevelopment of the Sidney Street and 40 Erie Street properties to meet the growing demand for lab space in this dynamic market.

•

Net gains totaling $11.0 million from the sale of equity investments in life science companies in the first quarter, with additional net gains totaling $43.8 million from the sale of an equity investment in a single life science company subsequent to the end of the quarter.

First quarter leasing comprised:

•

33 new leases totaling approximately 696,400 square feet, highlighted by new tenant relationships with:

•

Biogen for approximately 80,000 square feet at the company’s 301 Binney Street property in Cambridge, Massachusetts;

•

Penn Presbyterian Medical Center for approximately 56,200 square feet at the 3737 Market Street building in Philadelphia.

•

Stanford Health Care for approximately 138,000 square feet and Advanced Cell Diagnostics for approximately 35,100 square feet at the company’s Pacific Research Center in the San Francisco Bay Area;

•

Akamai Technologies for approximately 67,000 square feet and Reed Elsevier for approximately 33,500 square feet at the 50 Hampshire Street property in Cambridge, Massachusetts; and

•

Juno Therapeutics for approximately 67,800 square feet at the 217th Street property in Bothell, Washington.

Total revenues for the first quarter were approximately $178. 0 million, compared to approximately $168.9 million for the same period in 2014. Rental revenues for the first quarter were approximately $117.5 million.

•

CFFO and FFO, calculated in accordance with standards established by NAREIT, for the first quarter were $0.41 per diluted share for the quarter. These amounts include:

•

The benefit of $16.2 million in lease termination revenue added approximately $0.08 per diluted share, including fees received from Vertex Pharmaceuticals. Lease termination revenues associated with first quarter lease terminations, net of those previously disclosed at 50 Hampshire and 650 East Kendall which collectively amount to $0.02, increased FFO by $0.06 per diluted share. These amounts were partially offset by the loss of previously anticipated rental revenue on terminated space in the first quarter of approximately $0.01 per diluted share, all resulting in a net increase to FFO of $0.05 per diluted share from lease terminations in the first quarter;

•

Realized gains totaling $11.0 million, net of an allocation of income attributable to noncontrolling interests, or $0.05 per diluted share, from the sale of equity investments in life science companies; and

•

A charge of approximately $9.9 million, or approximately $0.05 per diluted share, associated with the previously announced cessation of employment of one of the company’s executives;

•

AFFO for the quarter was $0.36 per diluted share. The company reported net income available to common stockholders for the quarter of approximately $17.3 million, or $0.08 per diluted share.

About BioMed Realty Trust

BioMed Realty, with its trusted expertise and valuable relationships, delivers optimal real estate solutions for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty owns or has interests in properties comprising approximately 18 million rentable square feet. Additional information is available at www.biomedrealty.com.Follow us on Twitter @biomedrealty.

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INVESTOR INFORMATION

MARCH 31, 2015


Company Information
Corporate Headquarters	Trading Symbol	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive	BMR	Computershare Shareowner Services LLC	New York Stock Exchange
San Diego, CA 92128		250 Royall Street
(858) 485-9840		Canton, MA 02021
(858) 485-9843 (fax)		(877) 296-3711

Please visit our corporate website at: www.biomedrealty.com

Board of Directors	Executive Leadership Team
Alan D. Gold	Alan D. Gold	Karen A. Sztraicher	John P. Bonanno
Chairman	Chairman, President and	Executive Vice President,	Executive Vice President,
Daniel M. Bradbury	Chief Executive Officer	Asset Management	Development & Investments
William R. Brody, M.D., Ph.D.	Gary A. Kreitzer	Jonathan P. Klassen	James R. Berens
Gary A. Kreitzer	Executive Vice President, Director	Executive Vice President,	President
Theodore D. Roth	Greg N. Lubushkin	General Counsel	Wexford Science & Technology
Janice. L. Sears	Chief Financial Officer
M. Faye Wilson


Common Stock Data (NYSE: BMR)	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
High price	$	25.11		$	22.03		$	22.62		$	22.47		$	20.89
Low price	$	20.26		$	19.87		$	19.92		$	19.94		$	17.98
Average closing price	$	22.97		$	21.30		$	21.73		$	21.24		$	19.72
Closing price	$	22.66		$	21.54		$	20.20		$	21.83		$	20.49
Dividends per share - annualized	$	1.04		$	1.04		$	1.00		$	1.00		$	1.00
Closing dividend yield - annualized		4.6	%		4.8	%		5.0	%		4.6	%		4.9	%
Total common shares and units outstanding		208,968			202,847			202,860			197,931			197,908
Closing market value of outstanding shares and units	$	4,735,215		$	4,369,337		$	4,097,785		$	4,320,839		$	4,055,134
Consolidated Debt		2,758,530			2,712,900			2,845,686			2,841,063			2,761,336

Total market capitalization	$	7,493,745		$	7,082,237		$	6,943,471		$	7,161,902		$	6,816,470

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EQUITY RESEARCH COVERAGE

MARCH 31, 2015


Cantor Fitzgerald	Evan Smith	(212) 915-1220	evan.smith@cantor.com

Cowen and Company	James Sullivan Tom Catherwood	(646) 562-1380 (646) 562-1382	james.sullivan@cowen.com tom.catherwood@cowen.com

Green Street Advisors	Michael Knott Kevin Tyler	(949) 640-8780 (949) 640-8780	mknott@greenst.com ktyler@greenst.com

Jefferies & Co.	Omotayo Okusanya	(212) 336-7076	tokusanya@jefferies.com

KeyBanc Capital Markets	Jordan Sadler Craig Mailman	(917) 368-2280 (917) 368-2316	jsadler@keybanccm.com cmailman@keybanccm.com

Mizuho Securities	Richard Anderson	(212) 205-8445	richard.anderson@us.mizuho-sc.com

MLV & Co.	Paul Morgan Joe Ng	(415) 325-4187 (646) 412-7736	pmorgan@mlvco.com jng@mlvco.com

Morgan Stanley	Vikram Malhotra Landon Park	(212) 761-7064 (212) 761-6368	vikram.malhotra@morganstanley.com landon.park@morganstanley.com

Raymond James	Paul Puryear William Crow	(727) 567-2253 (727) 567-2594	paul.puryear@raymondjames.com bill.crow@raymondjames.com

Robert W. Baird & Co.	David Rodgers Stephen Dye	(216) 737-7341 (312) 609-5480	drodgers@rwbaird.com sdye@rwbaird.com

Stifel, Nicolaus & Company, Inc.	Daniel Bernstein Elizabeth Moran	(443) 224-1351 (443) 224-1353	bernsted@stifel.com morane@stifel.com

UBS Securities	Ross Nussbaum Nick Yulico	(212) 713-2484 (212) 713-3402	ross.nussbaum@ubs.com nick.yulico@ubs.com

Wells Fargo Securities	Brendan Maiorana Young Ku	(443) 263-6516 (443) 263-6564	brendan.maiorana@wachovia.com young.ku@wachovia.com

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FINANCIAL AND OPERATING HIGHLIGHTS

MARCH 31, 2015

(In thousands, except per share and ratio amounts)


	Three Months Ended															Year Ended
	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			12/31/14
Selected Operating Data:
Rental revenues	$	117,520		$	121,973		$	122,838		$	120,924		$	120,026		$	485,761
Other revenues		16,534			2,930			3,452			9,957			10,115			26,454
Total revenues		178,010			165,656			168,916			171,161			168,876			674,609
Net operating income - cash basis		116,423			111,048			113,309			115,700			113,958			454,015
Other income/(expense)		12,884			(184	)		2,148			1,027			8,163			11,154
General and administrative expense		12,789			12,162			12,768			12,443			11,942			49,315
Interest expense, net		21,395			21,924			22,215			23,131			28,010			95,280
Capitalized interest		6,781			6,143			6,120			5,423			4,192			21,878
Operating margin		63.7	%		67.2	%		66.8	%		66.7	%		66.9	%		66.9	%
General and administrative expense / Total revenues		7.2	%		7.3	%		7.6	%		7.3	%		7.1	%		7.3	%
Net income available to common stockholders (1)		17,345			140,349			15,960			18,636			18,833			193,778
FFO - diluted (2)		85,259			73,157			83,695			83,378			83,383			323,612
CFFO - diluted (2)		85,723			74,117			84,182			84,512			84,633			327,443
AFFO - diluted (2)		75,361			56,567			72,742			67,210			79,400			275,918
Selected Balance Sheet Data:
Investments in real estate, gross	$	6,517,174		$	6,363,014		$	6,473,731		$	6,362,100		$	6,070,981		$	6,363,014
Investments in real estate, net		5,517,629			5,416,575			5,535,115			5,474,648			5,235,036			5,416,575
Cash and cash equivalents		64,958			46,659			33,864			39,004			59,121			46,659
Total assets		6,308,418			6,170,886			6,238,312			6,159,737			6,075,431			6,170,886
Total debt		2,758,530			2,712,900			2,845,686			2,841,063			2,761,336			2,712,900
Total liabilities		3,151,340			3,100,944			3,228,602			3,207,344			3,100,548			3,100,944
Profitability Measures:
Net income per share - diluted	$	0.08		$	0.70		$	0.08		$	0.10		$	0.10		$	0.98
FFO per share - diluted (2)	$	0.41		$	0.35		$	0.40		$	0.40		$	0.40		$	1.55
CFFO per share - diluted (2)	$	0.41		$	0.36		$	0.40		$	0.40		$	0.41		$	1.57
AFFO per share - diluted (2)	$	0.36		$	0.27		$	0.35		$	0.32		$	0.38		$	1.32
Dividend per share - common stock	$	0.26		$	0.26		$	0.25		$	0.25		$	0.25		$	1.01
CFFO payout ratio (3)		63.4	%		72.2	%		62.5	%		62.5	%		61.0	%		64.3	%
AFFO payout ratio (3)		72.2	%		96.3	%		71.4	%		78.1	%		65.8	%		76.5	%
CFFO payout ratio - proforma (3)		56.5	%		68.4	%		—			—			—			63.5	%
AFFO payout ratio - proforma (3)		66.7	%		89.7	%		—			—			—			75.4	%
Financial Ratios:
EBITDA (4)	$	107,159		$	229,158		$	105,677		$	104,445		$	109,893		$	549,173
Adjusted EBITDA (4)		120,950			102,167			107,180			106,091			113,077			428,515
Net Debt / Adjusted EBITDA (4)		5.5			6.5			6.5			6.6			5.9			6.2
Interest coverage		6.4			5.3			5.5			5.2			4.5			5.1
Fixed charge coverage		5.6			4.8			5.0			4.8			4.0			4.6
Debt / Total assets		43.7	%		44.0	%		45.6	%		46.1	%		45.5	%		44.0	%
Debt / Total gross assets		37.7	%		38.1	%		39.7	%		40.3	%		40.0	%		38.1	%
Debt / Total capitalization		36.8	%		38.3	%		41.0	%		39.7	%		40.5	%		38.3	%

(1)	For the three months ended December 31, 2014, amount includes $136.6 million related to the gain on sale of the Company’s 9911 Belward Campus Drive property in Rockville, Maryland.

(2)	For definitions and discussion of FFO, CFFO and AFFO, see page 37. For a quantitative reconciliation of the differences between FFO, CFFO, AFFO and net income available to common stockholders, see pages 12 and 13.

(3)	See page 13 for detail of the CFFO and AFFO payout ratios.

(4)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 37. For a quantitative reconciliation of the differences between EBITDA, Adjusted EBITDA and net income available to common stockholders, page 14.

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GUIDANCE

MARCH 31, 2015

(Dollars in thousands)


		FFO and CFFO Per Diluted Share Guidance
		(low to high)
Projected Net Income per Diluted Share Available to Common Stockholders		$0.32 - $0.40
Add:
Real Estate Depreciation and Amortization		$1.28
Noncontrolling Interests in Operating Partnership		$0.01
Projected FFO and CFFO per Diluted Share		$1.61 - $1.69
Weighted-Average Common Shares - Diluted		209.3 million

		Major Assumptions
GAAP Rental Revenues		$475,000 - $505,000
Interest Expense		$80,000 - $90,000
Capitalized Interest		$24,000 - $28,000
General & Administrative Expense		$49,000 - $51,000
Tenant Recovery Percentage		74% - 77%
BioMed Ventures Investment Gains, net (1)		$54,800
Termination Income, net (2)		$16,150
2015 FY Leasing
Gross Leasing - Operating Portfolio		2.0 - 2.2 million SF
Gross Leasing - Development Portfolio		150,000 - 250,000 SF
Total Gross Leasing		2.15 - 2.45 million SF
Net Absorption		250,000 - 500,000 SF
Same Store Assumptions
Q2 / Q3 2015 Cash NOI YOY Comparison		(6%) - (4%)
Q4 2015 Cash NOI YOY Comparison		(2%) - 0%
Capital Assumptions (3)
Dispositions		$50,000 - $75,000
Unsecured Bond Issuance (Second Half of 2015)		$250,000 - $400,000
2015 Future Development/Redevelopment Portfolio Funding Estimate (4)		$250,000 - $300,000
Operating Portfolio - Leasing Capital		$70,000 - $115,000
Signed Leases		$50,000 - $75,000
Speculative		$20,000 - $40,000

Note: The company’s 2015 FFO and CFFO estimates reflect the impact of previously announced new investments, including the acquisition of the 307 Westlake Avenue North building in Seattle and commencement of the i3 development in San Diego in the first quarter. The company continues to target new investment opportunities, including acquisitions and new development projects; however, the company’s 2015 FFO and CFFO estimates do not reflect the impact of any other future new investments (acquisitions or development), or related financing activity, as the impact of such investments may vary significantly based on the nature of these investments, timing and other factors. The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, including certain assumptions with respect to leasing activity, rental rates, occupancy levels, interest rates, acquisitions, development and redevelopment and the amount and timing of acquisitions, development and redevelopment activities. The company’s actual results may differ materially from these estimates.

(1)	Only includes the impact of gains recorded during the first quarter and additional gains realized since March 31, 2015 from the sale of investments in life science companies, net of an allocation of income attributable to noncontrolling interests.

(2)	Does not include the effect of any other revenue or income (or losses) that might arise from lease terminations other than the impact of lease termination revenue recorded during the three months ended March 31, 2015.

(3)	Represents the period covering April through December 2015.

(4)	Excludes capitalized interest and capitalized operating expenses.

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PORTFOLIO SUMMARY

MARCH 31, 2015


			Current						Percent of								Weighted-
	Gross		Annualized				Rentable		Rentable			Leased					Average
	Book Value		Base Rent (1)		Buildings		Square Feet		Sq Ft			Square Feet		Leased %			Leased % (2)
	(In thousands)		(In thousands)
Operating portfolio
Boston	$	1,808,727	$	151,102		26		3,028,364		16.9	%		2,605,297		86.0	%		91.1	%
San Francisco		865,510		61,186		30		2,913,194		16.3	%		2,508,188		86.1	%		87.6	%
San Diego		772,153		61,295		40		1,918,547		10.7	%		1,802,725		94.0	%		93.0	%
New York		404,673		43,366		15		1,491,927		8.3	%		1,295,696		86.8	%		89.5	%
Maryland		551,969		49,636		20		1,732,683		9.7	%		1,588,038		91.7	%		92.8	%
Pennsylvania
Philadelphia		176,651		13,594		2		489,098		2.7	%		481,781		98.5	%		97.7	%
Suburban PA		87,299		6,299		6		404,442		2.3	%		259,452		64.2	%		59.0	%
Seattle
Downtown Seattle		249,826		14,009		3		368,526		2.1	%		312,434		84.8	%		83.2	%
Suburban Seattle		38,542		2,178		2		118,799		0.7	%		97,966		82.5	%		82.9	%
North Carolina		186,059		14,532		5		858,328		4.8	%		843,477		98.3	%		98.9	%
Cambridge, UK		161,472		15,859		11		472,234		2.6	%		470,015		99.5	%		99.5	%
University Related (3)		440,869		44,274		14		1,773,415		9.9	%		1,629,685		91.9	%		90.8	%

Total operating portfolio	$	5,743,750	$	477,330		174		15,569,557		86.9	%		13,894,754		89.2	%		90.7	%
Active new construction
Boston	$	39,134	$	670		1		63,520		0.4	%		14,511		22.8	%		22.8	%
San Francisco		33,009		11,830		2		360,000		2.0	%		360,000		100.0	%		100.0	%
San Diego		46,322		—		3		316,000		1.8	%		—		—			—
New York		160,109		13,369		2		297,000		1.7	%		297,000		100.0	%		100.0	%
Seattle		24,842		2,160		1		122,702		0.7	%		46,407		37.8	%		37.8	%
North Carolina		5,764		2,959		2		283,250		1.6	%		167,947		59.3	%		59.3	%
Cambridge, UK		14,353		1,507		1		42,410		0.2	%		42,410		100.0	%		100.0	%
University Related (3)		136,783		12,241		1		510,419		2.8	%		505,683		99.1	%		99.1	%

Total active new construction	$	460,316	$	44,735		13		1,995,301		11.1	%		1,433,958		71.9	%		79.2	%

Total Consolidated Portfolio	$	6,204,066	$	522,065		187		17,564,858		98.0	%		15,328,712		87.3	%		89.8	%

Unconsolidated partnership portfolio (4)
Boston	$	23,076	$	15,997		2		282,217		1.6	%		281,892		99.9	%		99.9	%
San Diego		11,793		2,037		1		72,863		0.4	%		72,863		100.0	%		100.0	%
Maryland		109		—		—		—		—			—		—			—

Total unconsolidated partnership portfolio	$	34,978	$	18,034		3		355,080		2.0	%		354,755		99.9	%		99.9	%

Total Portfolio	$	6,239,044	$	540,099		190		17,919,938		100.0	%		15,683,467		87.5	%		89.9	%

Total Land bank	$	313,108		—		—		6,898,000		—			—		—			—

Total Portfolio Including Land Bank	$	6,552,152						24,817,938

(1)	Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)	Calculated based on gross book value for each asset multiplied by the percentage leased.

(3)	Includes Wexford and BioMed properties not located in a core market. See pages 23- 26 for property listing.

(4)	See page 25 for detail of the unconsolidated partnership portfolio.

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CONSOLIDATED BALANCE SHEETS

MARCH 31, 2015

(In thousands)


	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
Assets
Investments in real estate, net	$	5,517,629		$	5,416,575		$	5,535,115		$	5,474,648		$	5,235,036
Investments in unconsolidated partnerships		34,978			35,291			36,275			32,440			31,461
Cash and cash equivalents		64,958			46,659			33,864			39,004			59,121
Accounts receivable, net		13,518			14,631			18,843			9,686			10,719
Accrued straight-line rents, net		164,049			163,716			183,904			181,705			178,114
Deferred leasing costs, net		219,549			219,713			224,824			236,848			189,527
Other assets		293,737			274,301			205,487			185,406			371,453

Total assets	$	6,308,418		$	6,170,886		$	6,238,312		$	6,159,737		$	6,075,431

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	503,200		$	496,757		$	478,543		$	456,034		$	706,013
Exchangeable senior notes, net (1)		—			95,678			95,678			180,000			180,000
Unsecured senior notes, net		1,294,255			1,293,903			1,293,572			1,293,246			895,312
Unsecured senior term loans		741,626			749,326			755,876			764,106			760,066
Unsecured line of credit		226,000			84,000			229,000			155,000			226,000
Accounts payable, accrued expenses, and other liabilities		386,259			381,280			375,933			358,958			333,157

Total liabilities		3,151,340			3,100,944			3,228,602			3,207,344			3,100,548
Equity:
Stockholders’ equity:
Common stock		2,036			1,975			1,975			1,925			1,925
Additional paid-in capital		3,746,823			3,649,235			3,643,957			3,557,886			3,554,504
Accumulated other comprehensive loss, net		14,804			(2,214	)		(20,915	)		(24,088	)		(19,973	)
Dividends in excess of earnings		(681,564	)		(645,983	)		(675,763	)		(642,360	)		(612,864	)

Total stockholders’ equity		3,082,099			3,003,013			2,949,254			2,893,363			2,923,592
Noncontrolling interests		74,979			66,929			60,456			59,030			51,291

Total equity		3,157,078			3,069,942			3,009,710			2,952,393			2,974,883

Total liabilities and equity	$	6,308,418		$	6,170,886		$	6,238,312		$	6,159,737		$	6,075,431

(1)	During the first quarter 2015, 5,764,026 shares of common stock were issued in exchange for the remaining $95.7 million in aggregate principal of the Exchangeable Senior Notes.

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CONSOLIDATED STATEMENTS OF INCOME

MARCH 31, 2015

(In thousands, except share and per share data)


	Three Months Ended															Year Ended
	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			12/31/14
Revenues:
Rental	$	117,520		$	121,973		$	122,838		$	120,924		$	120,026		$	485,761
Tenant recoveries		43,956			40,753			42,626			40,280			38,735			162,394
Other revenue		16,534			2,930			3,452			9,957			10,115			26,454

Total revenues		178,010			165,656			168,916			171,161			168,876			674,609

Expenses:
Rental operations		58,647			53,444			54,899			53,636			52,523			214,502
Depreciation and amortization		67,080			64,744			64,452			62,736			62,409			254,341
General and administrative		12,789			12,162			12,768			12,443			11,942			49,315
Executive severance		9,891			4,380			—			—			—			4,380
Acquisition-related expenses		464			960			487			1,134			1,250			3,831

Total expenses		148,871			135,690			132,606			129,949			128,124			526,369

Income from operations		29,139			29,966			36,310			41,212			40,752			148,240
Equity in net income/(loss) of unconsolidated partnerships		153			160			733			(10	)		(138	)		745
Interest expense, net		(21,395	)		(21,924	)		(22,215	)		(23,131	)		(28,010	)		(95,280	)
Gain on sale of real estate (1)		—			136,609			—			—			—			136,609
Other income/(expense)		12,884			(184	)		2,148			1,027			8,163			11,154

Net income		20,781			144,627			16,976			19,098			20,767			201,468
Net income attributable to noncontrolling interests		(3,436	)		(4,278	)		(1,016	)		(462	)		(1,934	)		(7,690	)

Net income available to common stockholders	$	17,345		$	140,349		$	15,960		$	18,636		$	18,833		$	193,778

Net income per share available to common stockholders:
Basic earnings per share	$	0.08		$	0.71		$	0.08		$	0.10		$	0.10		$	0.99

Diluted earnings per share	$	0.08		$	0.70		$	0.08		$	0.10		$	0.10		$	0.98

Weighted-average common shares outstanding:
Basic		200,789,795			196,017,579			194,022,619			191,003,248			190,905,867			193,003,934

Diluted		206,536,148			208,528,196			199,574,893			196,800,354			196,545,536			207,232,960

(1)	Includes gain on sale of 9911 Belward Campus Drive property in December 2014.

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BALANCE SHEET / INCOME STATEMENT DETAIL

MARCH 31, 2015

(In thousands)


	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
Investment in equity securities, cost basis	$	58,204		$	53,708		$	38,334		$	30,250		$	24,051
Unrealized gain on equity securities		71,662			48,341			22,001			18,451			26,335

Investment in equity securities, net		129,866			102,049			60,335			48,701			50,386
Restricted cash		24,019			30,057			8,297			9,096			11,190
Acquired above-market leases, net		10,692			11,207			12,197			13,262			14,380
Acquired below-market ground lease, net		24,669			24,975			25,256			25,575			21,865
Deferred loan costs, net		14,851			16,154			16,997			18,652			17,291
Lease incentives, net		23,790			24,414			23,907			19,988			19,135
Prepaid ground rent		18,333			18,380			18,380			18,206			—
Construction loan receivable, net (1)		—			—			—			—			191,280
Other		47,517			47,065			40,118			31,926			45,926

Other assets	$	293,737		$	274,301		$	205,487		$	185,406		$	371,453

Security deposits	$	14,312		$	14,931		$	14,766		$	14,348		$	13,833
Dividends and distributions payable		54,332			52,740			50,715			49,483			49,477
Accounts payable, accrued expenses and other liabilities		278,553			276,176			271,634			253,259			231,073
Derivative instruments		2,632			1,635			1,328			2,909			2,154
Acquired below-market leases, net		36,430			35,798			37,490			38,959			36,620

Accounts payable, accrued expenses and other liabilities	$	386,259		$	381,280		$	375,933		$	358,958		$	333,157


	Three Months Ended
	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
Lease termination revenue	$	16,150		$	2,801		$	3,300		$	1,023		$	5,287
Construction loan revenue (2)		—			—			—			8,653			2,557
Other revenue		384			129			152			281			2,271

Other revenue	$	16,534		$	2,930		$	3,452		$	9,957		$	10,115

Rental operations expenses	$	44,904		$	38,902		$	39,359		$	39,511		$	38,039
Real estate taxes		13,743			14,542			15,540			14,125			14,484

Rental operations	$	58,647		$	53,444		$	54,899		$	53,636		$	52,523

Non-cash adjustment for securities	$	—		$	—		$	—		$	(50	)	$	—
(Loss)/gain on derivative instruments		(170	)		276			(190	)		(270	)		161
Other investment (loss)/gain		(292	)		(708	)		2,291			—			(1,319	)
Realized gain on securities		13,704			1,551			681			546			9,322
Realized (loss)/gain on foreign currency transactions		(211	)		(167	)		(96	)		100			29
Income tax (expense)/benefit		(147	)		(1,136	)		(538	)		701			(30	)

Other income/(expense)	$	12,884		$	(184	)	$	2,148		$	1,027		$	8,163

(1)	Represents funding of draws on a $355 million construction loan secured by first priority mortgages on a 1.1 million square foot laboratory, office and retail development project located in Boston, Massachusetts, which was repaid in May 2014 prior to maturity.

(2)	Construction loan revenue for the three months ended June 30, 2014 includes a prepayment fee of approximately $7.5 million, net of deferred loan fees write-offs.

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FFO, CFFO AND AFFO (1)

MARCH 31, 2015

(In thousands)


	Three Months Ended															Year Ended
	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			12/31/14
Reconciliation of net income available to common stockholders to funds from operations excluding acquisition-related expenses (CFFO):
Net income available to common stockholders	$	17,345		$	140,349		$	15,960		$	18,636		$	18,833		$	193,778
Adjustments:
Gain on sale of real estate (2)		—			(136,609	)		—			—			—			(136,609	)
Noncontrolling interests in operating partnership		457			3,782			429			514			521			5,246
Depreciation & amortization - unconsolidated partnerships		1,006			821			2,312			403			373			3,909
Depreciation & amortization - consolidated entities		67,080			64,744			64,452			62,736			62,409			254,341
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(812	)		(847	)		(699	)		(599	)		(441	)		(2,586	)

Funds from operations (FFO) - basic	$	85,076		$	72,240		$	82,454		$	81,690		$	81,695		$	318,079
Interest expense - exchangeable senior notes due 2030 (3)		183			917			1,241			1,688			1,688			5,533

FFO - diluted	$	85,259		$	73,157		$	83,695		$	83,378		$	83,383		$	323,612
Acquisition-related expenses		464			960			487			1,134			1,250			3,831

CFFO - diluted	$	85,723		$	74,117		$	84,182		$	84,512		$	84,633		$	327,443


Reconciliation of CFFO to adjusted funds from operations (AFFO):
Adjustments:
Recurring capital expenditures and second generation tenant improvements (4)		(15,782	)		(22,591	)		(17,007	)		(21,553	)		(7,731	)		(68,882	)
Leasing commissions (5)		(3,556	)		(2,078	)		(1,741	)		(1,929	)		(1,910	)		(7,658	)
Loss/(gain) on derivative instruments		170			(276	)		190			270			(161	)		23
Non-cash adjustment for securities		—			—			—			50			—			50
Non-cash debt adjustments		2,790			2,950			2,850			3,106			2,942			11,848
Amortization of lease incentives		1,016			910			656			561			557			2,684
Depreciation included in general and administrative expense		844			771			848			757			740			3,116
Non-cash equity compensation		8,007			4,625			3,658			3,729			3,750			15,762
Straight line rents		(3,781	)		(1,941	)		(1,174	)		(1,949	)		(3,194	)		(8,258	)
Share of unconsolidated partnership adjustments (6)		46			281			218			18			18			535
Fair-value lease revenue		(471	)		(506	)		(184	)		(442	)		(285	)		(1,417	)
Adjustments for noncontrolling interests		355			305			246			80			41			672

AFFO - diluted	$	75,361		$	56,567		$	72,742		$	67,210		$	79,400		$	275,918

(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 37.

(2)	Includes gain on sale of 9911 Belward Campus Drive property in December 2014.

(3)

The calculations of FFO, CFFO and AFFO per share diluted include the assumed issuance of common stock pursuant to the exchange provision of the exchangeable senior notes due 2030, which is dilutive based on the “if converted” method for all periods presented since the original issuance in January 2010. Under the if converted method, if the add back of interest charges relating to the exchangeable senior notes due 2030 divided by the corresponding number of common shares issuable upon exchange is dilutive, the potentially issuable shares are included in the calculations of FFO, CFFO and AFFO per diluted share.

(4)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. Excludes first generation tenant improvements. For definitions of recurring capital expenditures and first and second generation leases, see page 38.

(5)	Leasing commissions associated with obtaining new or renewal leases are recorded at cost and amortized on a straight-line basis over the terms of the respective leases for AFFO purposes.

(6)	Share of unconsolidated partnership adjustments includes the Company’s share of amortization of deferred loan costs, lease incentives, straight line rents and fair-value lease revenue.

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FFO, CFFO AND AFFO PER SHARE (1)

MARCH 31, 2015

(In thousands, except share, per share and ratio amounts)


	Three Months Ended															Year Ended
	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			12/31/14
FFO - basic	$	85,076		$	72,240		$	82,454		$	81,690		$	81,695		$	318,079
FFO - diluted		85,259			73,157			83,695			83,378			83,383			323,612
CFFO - diluted		85,723			74,117			84,182			84,512			84,633			327,443
AFFO - diluted		75,361			56,567			72,742			67,210			79,400			275,918
FFO per share - basic	$	0.41		$	0.36		$	0.41		$	0.41		$	0.41		$	1.59
FFO per share - diluted (2)		0.41			0.35			0.40			0.40			0.40			1.55
CFFO per share - diluted (2)		0.41			0.36			0.40			0.40			0.41			1.57
AFFO per share - diluted (2)		0.36			0.27			0.35			0.32			0.38			1.32
Dividends and distributions declared per common share (4)	$	0.26		$	0.26		$	0.25		$	0.25		$	0.25		$	1.01

CFFO payout ratio		63.4	%		72.2	%		62.5	%		62.5	%		61.0	%		64.3	%
AFFO payout ratio		72.2	%		96.3	%		71.4	%		78.1	%		65.8	%		76.5	%
CFFO payout ratio - proforma (5)		56.5	%		68.4	%		—			—			—			63.5	%
AFFO payout ratio - proforma (5)		66.7	%		89.7	%		—			—			—			75.4	%
AFFO payout ratio - proforma - trailing twelve months (5)		75.6	%		74.8	%		72.5	%		75.2	%		71.9	%		75.4	%
Weighted-average common shares and units outstanding diluted (3)		208,039,538			202,850,109			201,059,541			198,309,809			198,056,397			200,084,811
Dilutive effect of exchangeable senior notes due 2030 (2)		1,194,015			5,678,087			7,589,600			10,578,132			10,525,410			8,631,164

Weighted-average common shares and units outstanding diluted - FFO, CFFO and AFFO		209,233,553			208,528,196			208,649,141			208,887,941			208,581,807			208,715,975

(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 37.

(2)

The calculations of FFO, CFFO and AFFO per share diluted include the assumed issuance of common stock pursuant to the exchange provision of the exchangeable senior notes due 2030, which is dilutive based on the “if converted” method for all periods presented since the original issuance in January 2010. Under the if converted method, if the add back of the exchangeable senior notes due 2030 divided by the corresponding number of common shares issuable upon exchange is dilutive, the potentially issuable shares are included in the nterest charges relating to calculations of FFO, CFFO and AFFO per diluted share.

(3)

The three months ended March 31, 2015, September 30, 2014, June 30, 2014 and March 31, 2014 include 1,503,390, 1,484,648, 1,509,455 and 1,510,861 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share. The year ended December 31, 2014 includes 1,483,015 shares of unvested restricted stock which are considered anti-dilutive for purposes of calculating dilutive earnings per share. The three months ended December 31, 2014 include 1,427,056 shares of unvested restricted stock which are considered dilutive for purposes of calculating diluted earnings per share.

(4)	Excludes the special dividend of $0.30 per share paid on December 29, 2014 to stockholders of record as of the close of business on December 22, 2014.

(5)	Proforma excludes executive severance for the three months ended March 31, 2015 and December 31, 2014 and the year ended December 31, 2014.

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RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1)

MARCH 31, 2015

(In thousands)


	Three Months Ended
	3/31/15		12/31/14			9/30/14		6/30/14			3/31/14
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA:
Net income available to common stockholders	$	17,345	$	140,349		$	15,960	$	18,636		$	18,833
Interest expense, net		21,395		21,924			22,215		23,131			28,010
Interest expense - unconsolidated partnerships		186		184			200		240			238
Income tax expense/(benefit)		147		1,136			538		(701	)		30
Depreciation & amortization - consolidated entities		67,080		64,744			64,452		62,736			62,409
Depreciation & amortization - unconsolidated partnerships		1,006		821			2,312		403			373

EBITDA		107,159		229,158			105,677		104,445			109,893
Noncontrolling interests		3,436		4,278			1,016		462			1,934
Non-cash adjustment for securities		—		—			—		50			—
Gain on sale of real estate (2)		—		(136,609	)		—		—			—
Acquisition-related expenses		464		960			487		1,134			1,250
Executive severance		9,891		4,380			—		—			—

Adjusted EBITDA	$	120,950	$	102,167		$	107,180	$	106,091		$	113,077

(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 37.

(2)	Includes gain on sale of 9911 Belward Campus Drive property in December 2014.

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RECONCILIATION OF NET OPERATING INCOME (1)

MARCH 31, 2015

(In thousands, except ratio amounts)


	Three Months Ended
	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
Net income	$	20,781		$	144,627		$	16,976		$	19,098		$	20,767
Equity in net (income)/loss of unconsolidated partnerships		(153	)		(160	)		(733	)		10			138
Interest expense, net		21,395			21,924			22,215			23,131			28,010
Gain on sale of real estate (2)		—			(136,609	)		—			—			—
Other (income)/expense		(12,884	)		184			(2,148	)		(1,027	)		(8,163	)

Income from operations		29,139			29,966			36,310			41,212			40,752
Depreciation and amortization		67,080			64,744			64,452			62,736			62,409
General and administrative		12,789			12,162			12,768			12,443			11,942
Executive severance		9,891			4,380			—			—			—
Acquisition-related expenses		464			960			487			1,134			1,250

Consolidated net operating income	$	119,363		$	112,212		$	114,017		$	117,525		$	116,353

Revenues:
Rental	$	117,520		$	121,973		$	122,838		$	120,924		$	120,026
Tenant recoveries		43,956			40,753			42,626			40,280			38,735
Other revenue (3)		16,534			2,930			3,452			9,957			10,115

Total revenues		178,010			165,656			168,916			171,161			168,876
Expenses:
Rental operations		58,647			53,444			54,899			53,636			52,523

Consolidated net operating income	$	119,363		$	112,212		$	114,017		$	117,525		$	116,353

Consolidated net operating income - cash basis (4)	$	116,423		$	111,048		$	113,309		$	115,700		$	113,958

Operating margin (5)		63.7	%		67.2	%		66.8	%		66.7	%		66.9	%
Operating expense recovery (6)		75.0	%		76.3	%		77.6	%		75.1	%		73.7	%

(1)	For a definition and discussion of net operating income, see page 37.

(2)	Includes gain on sale of 9911 Belward Campus Drive property in December 2014.

(3)	Includes lease termination income, see page 11 for detail.

(4)	Consolidated net operating income - cash basis is calculated as (consolidated net operating income - straight line rents - fair value lease revenue - lease incentive revenue - bad debt expense).

(5)	Operating margin is calculated as ((rental revenues + tenant recovery revenues - rental operations) / (rental revenues + tenant recovery revenues)).

(6)	Operating expense recovery is calculated as (tenant recovery revenues / rental operations).

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SAME PROPERTY ANALYSIS

MARCH 31, 2015

(Dollars in thousands)


	Same Property (1)			Previous Same (2)			Total			Development (3)			New Properties (4)			Other (5)			Total
Three Months Ended	3/31/15			3/31/15			3/31/15			3/31/15			3/31/15			3/31/15			3/31/15
Rentable square feet		14,600,098			—			14,600,098			2,329,606			635,154			—			17,564,858
Percent of total portfolio		83.1	%		—			83.1	%		13.3	%		3.6	%		—			100.0	%
Percent leased		88.6	%		—			88.6	%		75.9	%		98.7	%		—			87.3	%
Revenues:
Rental	$	111,769		$	—		$	111,769		$	2,227		$	3,543		$	(19	)	$	117,520
Tenant recoveries		40,894			2			40,896			658			2,229			173			43,956
Other revenues (6)		—			—			—			—			—			16,534			16,534

Total revenues		152,663			2			152,665			2,885			5,772			16,688			178,010
Expenses:
Rental operations		51,107			367			51,474			2,085			2,474			2,614			58,647

Net operating income / (loss)	$	101,556		$	(365	)	$	101,191		$	800		$	3,298		$	14,074		$	119,363
Less adjustments to cash basis (7)		(2,399	)		—			(2,399	)		(680	)		(258	)		397			(2,940	)

Net operating income - cash basis	$	99,157		$	(365	)	$	98,792		$	120		$	3,040		$	14,471		$	116,423
Rental revenue - cash basis (8)	$	108,282		$	—		$	108,282		$	1,381		$	3,286		$	17		$	112,966


	Same Property (1)			Previous Same (2)			Total			Development (3)			New Properties (4)			Other (5)			Total
Three Months Ended	3/31/14			3/31/14			3/31/14			3/31/14			3/31/14			3/31/14			3/31/14
Rentable square feet		14,600,098			429,485			15,029,583			802,305			—			—			15,831,888
Percent of total portfolio		92.2	%		2.7	%		94.9	%		5.1	%		—			—			100.0	%
Percent leased		88.1	%		100.0	%		88.4	%		70.7	%		—			—			87.3	%
Revenues:
Rental	$	111,156		$	2,846		$	114,002		$	7		$	—		$	6,017		$	120,026
Tenant recoveries		37,724			675			38,399			(50	)		—			386			38,735
Other revenues (6)		—			—			—			—			—			10,115			10,115

Total revenues		148,880			3,521			152,401			(43	)		—			16,518			168,876
Expenses:
Rental operations		48,600			887			49,487			388			—			2,648			52,523

Net operating income / (loss)	$	100,280		$	2,634		$	102,914		$	(431	)	$	—		$	13,870		$	116,353
Less adjustments to cash basis (7)		(3,059	)		737			(2,322	)		153			—			(226	)		(2,395	)

Net operating income - cash basis	$	97,221		$	3,371		$	100,592		$	(278	)	$	—		$	13,644		$	113,958
Rental revenue - cash basis (8)	$	106,477		$	3,583		$	110,060		$	7		$	—		$	5,691		$	115,758

Rental Revenues - GAAP basis		0.6	%		—			-2.0	%
Rental Revenues - Cash basis (8)		1.7	%		—			-1.6	%
NOI - GAAP basis		1.3	%		—			-1.7	%
NOI - Cash basis		2.0	%		—			-1.8	%

(1)	The Same Property portfolio includes properties in the operating portfolio that were stabilized or in lease up throughout the full quarter in both the current year and the prior year.

(2)	Properties previously included in same property portfolio in prior year quarters that are now in the Land Bank, comprised of King of Prussia and Gateway Business Park II.

(3)	Development includes properties that were entirely or primarily under active new construction during the quarter for the current or prior year.

(4)	New Properties include properties that were not owned for the full quarter in the prior year.

(5)	Other includes legal entities performing corporate level functions and properties that were sold during, or in between the comparative periods, which includes revenue and operating expenses relating to 9911 Belward Campus Drive, which was sold on December 9, 2014.

(6)	Includes lease termination revenue of $16.2 million and $5.5 million for the three months ended March 31, 2015 and March 31, 2014, respectively.

(7)	Adjustments to cash basis exclude adjustments to expenses accrued in rental operations, but include straight line rents, fair-value lease revenue, lease incentive revenue, bad debt expense and other revenue (including lease termination revenue).

(8)	Represents rents on a “cash-on-cash” basis.

LOGO

INTEREST EXPENSE & COVERAGE RATIOS (1)

MARCH 31, 2015

(In thousands, except ratio amounts)


	Three Months Ended
	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
Mortgage notes payable	$	6,220		$	6,253		$	6,156		$	5,982		$	11,593
Exchangeable senior notes		183			917			1,241			1,688			1,688
Unsecured senior notes		12,959			12,959			12,959			12,288			10,334
Unsecured senior term loan		1,653			1,717			1,785			1,791			1,995
Unsecured line of credit		1,577			1,786			1,793			2,112			2,076
Line of credit fees		450			460			460			471			563
Derivative instruments		844			860			895			923			859
Preferred returns		1,500			165			196			193			152

Interest expense - cash basis	$	25,386		$	25,117		$	25,485		$	25,448		$	29,260

Non-cash interest expense:
Amortization of fair-value of debt acquired		(569	)		(548	)		(665	)		(631	)		(535	)
Amortization of debt discounts		351			331			327			302			230
Amortization of deferred loan costs		1,214			1,433			1,451			1,707			1,509
Amortization of deferred interest costs		1,662			1,670			1,677			1,684			1,691
Amortization of put/call		132			64			60			44			47

Non-cash debt adjustments		2,790			2,950			2,850			3,106			2,942
Capitalized interest		(6,781	)		(6,143	)		(6,120	)		(5,423	)		(4,192	)

Interest expense, net	$	21,395		$	21,924		$	22,215		$	23,131		$	28,010

Interest coverage ratio
Adjusted EBITDA	$	120,950		$	102,167		$	107,180		$	106,091		$	113,077
Interest expense:
Interest expense, net		21,395			21,924			22,215			23,131			28,010
Interest expense - unconsolidated partnerships		186			184			200			240			238
Amortization of deferred interest costs		(1,662	)		(1,670	)		(1,677	)		(1,684	)		(1,691	)
Amortization of deferred loan costs		(1,214	)		(1,433	)		(1,451	)		(1,707	)		(1,509	)
Amortization of debt discounts		(351	)		(331	)		(327	)		(302	)		(230	)
Amortization of fair-value of debt acquired		569			548			665			631			535

Total interest expense	$	18,923		$	19,222		$	19,625		$	20,309		$	25,353

Interest coverage ratio		6.4			5.3			5.5			5.2			4.5

Fixed charge coverage ratio
Adjusted EBITDA	$	120,950		$	102,167		$	107,180		$	106,091		$	113,077
Fixed charges:
Interest expense, net		21,395			21,924			22,215			23,131			28,010
Interest expense - unconsolidated partnerships		186			184			200			240			238
Amortization of deferred interest costs		(1,662	)		(1,670	)		(1,677	)		(1,684	)		(1,691	)
Amortization of deferred loan costs		(1,214	)		(1,433	)		(1,451	)		(1,707	)		(1,509	)
Amortization of debt discounts		(351	)		(331	)		(327	)		(302	)		(230	)
Amortization of fair-value of debt acquired		569			548			665			631			535
Principal payments		2,514			2,080			2,020			1,977			2,729

Total fixed charges	$	21,437		$	21,302		$	21,645		$	22,286		$	28,082

Fixed charge coverage ratio		5.6			4.8			5.0			4.8			4.0

(1)	For a discussion of coverage ratios, see page 37.

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CAPITAL STRUCTURE

MARCH 31, 2015

(Shares in thousands)


Consolidated Debt	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
Mortgage notes payable, net	$	503,200		$	496,757		$	478,543		$	456,034		$	706,013
Exchangeable senior notes, net		—			95,678			95,678			180,000			180,000
Unsecured senior notes, net		1,294,255			1,293,903			1,293,572			1,293,246			895,312
Unsecured senior term loans		741,626			749,326			755,876			764,106			760,066
Unsecured line of credit		226,000			84,000			229,000			155,000			226,000

Total Debt		2,765,081			2,719,664			2,852,669			2,848,386			2,767,391
Premium on consolidated debt, net		(6,551	)		(6,764	)		(6,983	)		(7,323	)		(6,055	)

Total Consolidated Debt	$	2,758,530		$	2,712,900		$	2,845,686		$	2,841,063		$	2,761,336


Equity	3/31/15		12/31/14		9/30/14		6/30/14		3/31/14
Closing share price	$	22.66	$	21.54	$	20.20	$	21.83	$	20.49
Total common shares and units outstanding		208,968		202,847		202,860		197,931		197,908

Total Equity Value	$	4,735,215	$	4,369,337	$	4,097,785	$	4,320,839	$	4,055,134

Total consolidated debt		2,758,530		2,712,900		2,845,686		2,841,063		2,761,336

Total Market Capitalization	$	7,493,745	$	7,082,237	$	6,943,471	$	7,161,902	$	6,816,470


	Three Months Ended
Summary of Common Shares	3/31/15		12/31/14		9/30/14		6/30/14		3/31/14
Earnings per share
Weighted-average common shares outstanding		200,790		196,018		194,023		191,003		190,906
Weighted-average OP and LTIP units outstanding		5,405		5,405		5,405		5,405		5,410
Dilutive effect of performance units		341		—		147		392		229
Dilutive effect of restricted stock		—		1,427		—		—		—
Dilutive effect of exchangeable senior notes due 2030		—		5,678		—		—		—

Diluted common shares - EPS		206,536		208,528		199,575		196,800		196,545

Funds from operations
Weighted-average common shares outstanding		200,790		196,018		194,023		191,003		190,906
Weighted-average OP and LTIP units outstanding		5,405		5,405		5,405		5,405		5,410
Dilutive effect of performance units		341		—		147		392		229
Dilutive effect of restricted stock		1,503		1,427		1,485		1,509		1,511
Dilutive effect of exchangeable senior notes due 2030		1,194		5,678		7,590		10,579		10,526

Diluted common shares - FFO		209,234		208,528		208,649		208,888		208,582

LOGO

DEBT SUMMARY

MARCH 31, 2015

(Dollars in thousands)


									Unamortized
	Stated			Effective			Principal		Premium /			Carrying		Maturity
	Rate			Rate			Balance		(Discount)			Value		Date
Consolidated Debt:
Mortgage Notes Payable:
9900 Belward Campus Drive		5.64	%		3.99	%	$	10,447	$	398		$	10,845		07/17
9901 Belward Campus Drive		5.64	%		3.99	%		12,864		488			13,352		07/17
100 College Street		2.40	%		2.40	%		91,882		—			91,882		08/16
4320 Forest Park Avenue		4.00	%		2.70	%		21,000		—			21,000		06/15
300 George Street		6.20	%		4.91	%		44,615		3,568			48,183		07/25
Hershey Center for Applied Research		6.15	%		4.71	%		12,803		1,239			14,042		05/27
500 Kendall Street (Kendall D)		6.38	%		5.45	%		54,548		1,475			56,023		12/18
Shady Grove Road		5.97	%		5.97	%		140,599		—			140,599		09/16
University of Maryland BioPark I		5.93	%		4.69	%		15,871		1,262			17,133		05/25
University of Maryland BioPark II		5.20	%		4.33	%		61,636		3,351			64,987		09/21
University of Maryland BioPark Garage		5.20	%		4.33	%		4,639		252			4,891		09/21
University of Miami Life Science & Technology Park		4.00	%		2.89	%		20,000		263			20,263		02/16

Total / Weighted-Average on Mortgage Notes Payable		5.09	%		4.49	%		490,904		12,296			503,200
Unsecured Fixed Rate Debt:
Unsecured Senior Notes Due 2016		3.85	%		3.99	%		400,000		(565	)		399,435		04/16
Unsecured Senior Notes Due 2019		2.63	%		2.72	%		400,000		(2,016	)		397,984		05/19
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(1,488	)		248,512		04/20
Unsecured Senior Notes Due 2022		4.25	%		4.36	%		250,000		(1,676	)		248,324		07/22
Unsecured Variable Rate Debt:
Unsecured Senior Term Loan Due 2017 - U.S. Dollar (1)		1.58	%		2.39	%		243,596		—			243,596		03/17
Unsecured Senior Term Loan Due 2017 - GBP (2)		1.90	%		2.14	%		148,030		—			148,030		03/17
Unsecured Senior Term Loan Due 2018 (3)		1.37	%		1.67	%		350,000		—			350,000		03/18
Unsecured Line of Credit (4)		1.27	%		1.27	%		226,000		—			226,000		03/18

Total / Weighted-Average on Consolidated Debt		3.31	%		3.38	%	$	2,758,530	$	6,551		$	2,765,081

Share of Unconsolidated Partnership Debt:
BioPark Fremont (50%) (fixed)		3.75	%		3.70	%		1,411		6			1,417		05/15
PREI Secured Loan (20%) (variable)		2.23	%		2.23	%		27,795		—			27,795		08/15

Total / Weighted-Average on Share of Unconsolidated Partnership Debt		2.30	%		2.30	%		29,206		6			29,212

Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		3.29	%		3.37	%	$	2,787,736	$	6,557		$	2,794,293

(1)

The Company entered into interest rate swap agreements that effectively fix the interest rate on $200 million of the unsecured senior term loan facility due 2017 at 2.56% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings. Including the effect of these swaps, the weighted-average effective interest rate for the $243.6 million outstanding under the unsecured senior term loan facility due 2017 was 2.39% at March 31, 2015.

(2)

The Company amended the unsecured senior term loan facility and converted $156.4 million of outstanding borrowings into British pounds sterling equal to £100 million. The principal balance represents the dollar amount based on the exchange rate of $1.48 to £1.00 at the end of the quarter. The Company entered into interest rate swap agreements that effectively fix the interest rate on £100 million at 2.14% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings.

(3)	The Company entered into interest rate swap agreements effective October 1, 2013 that effectively fix the interest rate on $200 million of the unsecured senior term loan facility due 2018 at 1.90% for three years, subject to adjustments based on the Company’s credit ratings.

(4)	Effective rate excludes facility fee of 20 bps on the entire capacity of the unsecured line of credit, which equals approximately $450,000 per quarter.

LOGO

DEBT ANALYSIS

MARCH 31, 2015

(Dollars in thousands)


Credit Ratings	Rating			Outlook
Standard & Poors		BBB			Stable
Moody’s Investors Service		Baa2	(1)		Stable


	Principal		Percentage			Wtd. -Avg.			Wtd. - Avg.
Variable and Fixed Rate Debt	Balance		of Total			Stated Rate			Effective Rate
Fixed Rate Debt	$	1,705,573		61.7	%		4.39	%		4.31	%
Variable Rate Debt - Hedged
Unsecured Senior Term Loan Due 2017 - U.S. Dollar	$	200,000		7.23	%		1.58	%		2.56	%
Unsecured Senior Term Loan Due 2017 - GBP		148,030		5.35	%		1.90	%		2.14	%
Unsecured Senior Term Loan Due 2018		200,000		7.23	%		1.37	%		1.90	%

Subtotal / Weighted-Average on Variable Rate Debt - Hedged	$	548,030		19.8	%		1.59	%		2.21	%

Variable Rate Debt - Unhedged
Variable Rate Mortgages	$	91,882		3.32	%		2.40	%		2.40	%
Unsecured Senior Term Loan Due 2017 - U.S. Dollar		43,596		1.58	%		1.58	%		1.58	%
Unsecured Senior Term Loan Due 2018		150,000		5.42	%		1.37	%		1.37	%
Unsecured Line of Credit		226,000		8.17	%		1.27	%		1.27	%

Subtotal / Weighted-Average on Variable Rate Debt - Unhedged	$	511,478		18.5	%		1.53	%		1.53	%

Total / Weighted-Average on Consolidated Debt	$	2,765,081		100.0	%		3.31	%		3.38	%


Total Consolidated Debt		3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
Secured debt / Total gross assets			6.9	%		7.0	%		6.7	%		6.5	%		10.2	%
Floating rate debt / Total debt			38.4	%		33.7	%		36.8	%		33.6	%		35.7	%
Adjusted floating rate debt / Total debt (2)			18.5	%		13.2	%		17.0	%		13.5	%		15.2	%
Unencumbered real estate / Total real estate			90.2	%		85.7	%		86.1	%		86.3	%		76.9	%
Unencumbered CABR / Total CABR (3)			82.6	%		82.9	%		83.4	%		83.2	%		77.3	%
Unsecured line of credit capacity		$	674,000		$	816,000		$	671,000		$	745,000		$	674,000
Bond Covenants (4)	Requirements
Total outstanding debt / Total assets	Must be < 60%		38.6	%		39.1	%		40.7	%		41.5	%		40.8	%
Secured debt / Total assets	Must be < 40%		7.0	%		7.1	%		6.8	%		6.6	%		10.4	%
Consolidated income available for debt service / Annual debt service charge	Must be > 1.5X		4.5			4.2			4.3			4.0			3.6
Unencumbered assets / Unsecured debt - Notes due 2020	Must be > 150%		264	%		260	%		246	%		240	%		249	%
Unencumbered assets / Unsecured debt - Notes due 2016, 2019 and 2022	Must be > 150%		263	%		259	%		244	%		239	%		247	%

(1)	Investment grade corporate credit rating upgraded in April 2015 to Baa2 from Baa3.

(2)	Includes effect of interest rate swaps on the Company’s unsecured senior term loan facilities. See page 19 for more information.

(3)	For current annualized base rent (CABR) by market, see page 22.

(4)	For discussion on bond covenants, see page 38.

LOGO

DEBT MATURITIES

MARCH 31, 2015

(In thousands)

Weighted-average debt maturity is 3.4 years for consolidated debt (excluding extension options).


	2015		2016		2017		2018		2019		Thereafter		Total
Consolidated debt:
Mortgage notes payable:
Principal amortization	$	7,977	$	10,760	$	9,796	$	9,852	$	5,724	$	35,472	$	79,581
Maturity payments		21,000		249,531		22,510		37,952		—		80,330	$	411,323

Total mortgage notes payable		28,977		260,291		32,306		47,804		5,724		115,802		490,904
Unsecured debt:
Unsecured senior notes due 2016		—		400,000		—		—		—		—		400,000
Unsecured senior notes due 2019		—		—		—		—		400,000		—		400,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		250,000
Unsecured senior notes due 2022		—		—		—		—		—		250,000		250,000
Unsecured senior term loan due 2017 - U.S. Dollar		—		—		243,596		—		—		—		243,596
Unsecured senior term loan due 2017 - GBP		—		—		148,030		—		—		—		148,030
Unsecured senior term loan due 2018		—		—		—		350,000		—		—		350,000
Unsecured line of credit		—		—		—		226,000		—		—		226,000

Total unsecured debt		—		400,000		391,626		576,000		400,000		500,000		2,267,626
Total consolidated debt	$	28,977	$	660,291	$	423,932	$	623,804	$	405,724	$	615,802	$	2,758,530

Share of unconsolidated partnership debt:
BioPark Fremont (50%) (fixed)		1,411		—		—		—		—		—		1,411
PREI secured loan (20%) (variable) (1)		27,795		—		—		—		—		—		27,795

Share of total unconsolidated partnership debt	$	29,206	$	—	$	—	$	—	$	—	$	—	$	29,206

Total consolidated and share of unconsolidated partnership debt	$	58,183	$	660,291	$	423,932	$	623,804	$	405,724	$	615,802	$	2,787,736

LOGO

(1)	The maturity date of the PREI secured loan may be extended to August 2016 after satisfaction of certain conditions and payment of an extension fee.

LOGO

MARKET SUMMARY

MARCH 31, 2015


				Current (1)									Expiration (2)									GAAP
Market	Leased Square Feet			Annualized Base Rent			Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq Ft			Annualized Base Rent			Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq Ft			Annualized Base Rent			Annualized Base Rent per Leased Sq Ft
				(In thousands)									(In thousands)									(In thousands)
Boston		2,901,700		$	167,768			31.1	%	$	57.82		$	179,328			28.6	%	$	61.80		$	163,984		$	56.51
San Francisco		2,868,188			73,015			13.5	%		25.46			89,403			14.2	%		31.17			76,876			26.80
San Diego		1,875,588			63,332			11.7	%		33.77			78,661			12.5	%		41.94			65,715			35.04
New York		1,592,696			56,735			10.5	%		35.62			69,394			11.0	%		43.57			60,087			37.73
Maryland		1,588,038			49,636			9.2	%		31.26			58,388			9.3	%		36.77			50,967			32.09
Pennsylvania		741,233			19,893			3.7	%		26.84			24,593			3.9	%		33.18			21,665			29.23
Seattle		456,807			18,348			3.4	%		40.17			23,307			3.7	%		51.02			19,654			43.02
North Carolina		1,011,424			17,491			3.2	%		17.29			22,411			3.6	%		22.16			21,111			20.87
Cambridge, UK		512,425			17,366			3.2	%		33.89			17,366			2.8	%		33.89			17,680			34.50
University Related (3)		2,135,368			56,515			10.5	%		26.47			65,239			10.4	%		30.55			59,366			27.80

Total portfolio / weighted-average		15,683,467		$	540,099			100.0	%	$	34.44		$	628,090			100.0	%	$	40.05		$	557,105		$	35.52


	Active New			Unconsolidated
	Construction			Partnership						Total Operating Portfolio
Percent Leased by Market	(4)			Portfolio (5)						3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
Boston		22.8	%		99.9	%					86.0	%		96.5	%		99.2	%		98.9	%		98.9	%
San Francisco		100.0	%		—						86.1	%		81.4	%		83.7	%		81.2	%		82.2	%
San Diego		—			100.0	%					94.0	%		93.6	%		92.7	%		92.5	%		90.5	%
New York		100.0	%		—						86.8	%		86.8	%		86.8	%		86.8	%		84.6	%
Maryland		—			—						91.7	%		92.1	%		95.4	%		93.7	%		92.8	%
Pennsylvania		—			—						83.0	%		75.9	%		75.9	%		71.2	%		82.0	%
Seattle		37.8	%		—						84.2	%		72.9	%		69.7	%		69.7	%		69.3	%
North Carolina		59.3	%		—						98.3	%		97.0	%		92.9	%		92.9	%		92.1	%
Cambridge, UK		100.0	%		—						99.5	%		99.5	%		99.5	%		99.5	%		99.5	%
University Related (3)		99.1	%		—						91.9	%		91.3	%		91.2	%		90.6	%		83.6	%

Total portfolio (6)		71.9	%		99.9	%					89.2	%		89.6	%		90.6	%		89.9	%		89.0	%

Weighted-average leased % (7)		79.2	%		99.9	%					90.7	%		91.6	%		92.6	%		92.0	%		91.5	%

(1)	Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)	Annualized base rent at expiration is the monthly contractual rent as of date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

(3)	Includes Wexford and BioMed properties not located in a core market. See pages 23 - 26 for property listing.

(4)	See page 27 for detail of the consolidated portfolio and page 37 for definitions of terms.

(5)	See page 25 for detail of the unconsolidated partnership portfolio.

(6)	Calculated based on leased square feet divided by total square feet.

(7)	Calculated based on gross book value for each asset multiplied by the percentage leased.

LOGO

PROPERTY LISTING

MARCH 31, 2015


		Excluded From	Rentable Square Feet						Leased
		Same Property	Land		Active New		Operating		Square		Percent Leased (1)
	Property	Analysis	Bank		Construction		Portfolio		Feet		3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
	Boston
1	Albany Street			—		—		75,003		75,003		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
2	320 Bent Street			—		—		195,198		195,137		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
3	301 Binney Street			—		—		417,290		417,290		100.0	%		79.7	%		98.8	%		96.7	%		96.7	%
4	301 Binney Street Garage			—		—		528 Stalls		524 Stalls		100.0	%		100.0	%		100.0	%		100.0	%		99.8	%
5	210 Broadway			—		—		64,812		64,812		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
6	Center for Life Science \| Boston			—		—		704,159		704,159		100.0	%		98.9	%		98.9	%		98.9	%		98.9	%
7	Charles Street			—		—		47,912		47,912		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
8	320 Charles Street			—		—		99,513		99,513		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
9	Coolidge Avenue			—		—		37,684		34,580		91.8	%		91.8	%		91.8	%		91.8	%		91.8	%
10	21 Erie Street			—		—		48,627		28,019		57.6	%		100.0	%		100.0	%		100.0	%		100.0	%
11	40 Erie Street			—		—		100,854		—		—			100.0	%		100.0	%		100.0	%		100.0	%
12	47 Erie Street Parking Structure			—		—		447 Stalls		124 Stalls		28.2	%		73.2	%		73.2	%		72.0	%		71.1	%
13	Fresh Pond Research Park			—		—		90,702		89,176		98.3	%		98.3	%		98.3	%		98.3	%		98.3	%
14	50 Hampshire Street			—		—		200,360		103,694		51.8	%		100.0	%		100.0	%		100.0	%		100.0	%
15	60 Hampshire Street			—		—		41,257		35,703		86.5	%		86.5	%		86.5	%		86.5	%		86.5	%
16	Kendall Crossing Apartments			—		—		37 Apts.		36 Apts.		97.3	%		94.7	%		97.6	%		100.0	%		91.2	%
17	450 Kendall Street (Kendall G)	ü		—		63,520		—		14,511		22.8	%		22.8	%		—			—			—
18	500 Kendall Street (Kendall D)			—		—		349,325		346,535		99.2	%		99.2	%		98.5	%		98.5	%		98.2	%
19	675 W. Kendall Street (Kendall A)			—		—		302,919		302,919		100.0	%		100.0	%		100.0	%		100.0	%		99.7	%
20	Sidney Street			—		—		191,904		—		—			100.0	%		100.0	%		100.0	%		100.0	%
21	Vassar Street			—		—		60,845		60,845		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

	Total Boston			—		63,520		3,028,364		2,619,808		84.7	%		95.0	%		97.0	%		96.7	%		96.7	%

	San Francisco
22	Ardentech Court			—		—		55,588		55,588		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
23	Ardenwood Venture (2)			—		—		72,500		72,500		100.0	%		100.0	%		100.0	%		83.2	%		83.2	%
24	Bayshore Boulevard			—		—		183,344		183,344		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
25	Bridgeview Technology Park I			—		—		201,567		134,663		66.8	%		52.9	%		52.9	%		52.9	%		52.9	%
26	Bridgeview Technology Park II			—		—		50,400		50,400		100.0	%		100.0	%		100.0	%		100.0	%		57.0	%
27	550 Broadway Street			—		—		71,239		71,239		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
28	Dumbarton Circle			—		—		44,000		44,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
29	Gateway Business Park			770,000		—		121,405		76,272		62.8	%		43.2	%		82.2	%		82.2	%		82.2	%
30	Industrial Road			—		—		175,144		175,144		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
31	Kaiser Drive			—		—		87,953		71,215		81.0	%		81.0	%		81.0	%		81.0	%		81.0	%
32	Lincoln Centre	ü		160,000		360,000		—		360,000		100.0	%		100.0	%		—			—			—
33	Pacific Industrial Center			—		—		305,026		263,624		86.4	%		86.4	%		85.9	%		85.9	%		82.7	%
34	Pacific Research Center North			—		—		661,245		553,137		83.7	%		79.2	%		79.2	%		79.2	%		79.2	%
35	Pacific Research Center South			400,000		—		423,246		296,525		70.1	%		62.3	%		62.3	%		62.3	%		62.3	%
36	Science Center at Oyster Point			—		—		204,887		204,887		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
37	Woodside Technology Park			—		—		255,650		255,650		100.0	%		100.0	%		100.0	%		76.1	%		100.0	%

	Total San Francisco			1,330,000		360,000		2,913,194		2,868,188		87.6	%		83.5	%		83.7	%		81.2	%		82.2	%

	San Diego
38	Balboa Avenue			—		—		35,344		35,344		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
39	Bernardo Center Drive			—		—		61,286		61,286		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
40	Coast 9			—		—		162,074		156,659		96.7	%		84.6	%		84.6	%		84.6	%		76.6	%
41	4570 Executive Drive			—		—		125,219		125,219		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
42	Faraday Avenue			—		—		28,704		28,704		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

LOGO

PROPERTY LISTING

MARCH 31, 2015


		Excluded From	Rentable Square Feet						Leased
		Same Property	Land		Active New		Operating		Square		Percent Leased (1)
	Property	Analysis	Bank		Construction		Portfolio		Feet		3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
	San Diego (Continued)
43	Gazelle Court			—		—		176,000		176,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
44	i3	ü		—		316,000		—		—		—			—			—			—			—
45	3525 John Hopkins Court			—		—		48,306		48,306		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
46	3545-3575 John Hopkins Court			—		—		72,192		61,173		84.7	%		84.7	%		87.9	%		87.2	%		86.8	%
47	6114-6154 Nancy Ridge Drive			—		—		196,557		196,557		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
48	6122-6126 Nancy Ridge Drive			—		—		68,000		68,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
49	6828 Nancy Ridge Drive			—		—		42,138		42,138		100.0	%		100.0	%		100.0	%		100.0	%		42.0	%
50	Pacific Center Boulevard			—		—		66,745		66,745		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
51	Road to the Cure			—		—		67,998		48,248		71.0	%		100.0	%		100.0	%		100.0	%		100.0	%
52	San Diego Science Center			—		—		105,364		94,666		89.8	%		83.5	%		81.6	%		79.9	%		78.8	%
53	10240 Science Center Drive			—		—		49,347		49,347		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
54	10255 Science Center Drive			—		—		53,740		53,740		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
55	Sorrento Plaza			—		—		31,184		31,184		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
56	Sorrento Valley Boulevard			—		—		54,924		—		—			—			—			—			—
57	11388 Sorrento Valley Road			—		—		35,940		35,940		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
58	Summers Ridge			—		—		—		—		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
59	Torreyana Road			—		—		81,204		81,204		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
60	9865 Towne Centre Drive			—		—		94,866		94,866		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
61	9885 Towne Centre Drive			—		—		104,870		104,870		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
62	Waples Street			—		—		50,055		40,746		81.4	%		81.4	%		43.9	%		43.9	%		43.9	%
63	Wateridge Circle			—		—		106,490		101,783		95.6	%		95.6	%		95.6	%		95.6	%		95.6	%

	Total San Diego			—		316,000		1,918,547		1,802,725		80.7	%		93.6	%		92.7	%		92.5	%		90.5	%

	New York
64	Ardsley Park			50,000		—		207,855		185,905		89.4	%		89.4	%		89.4	%		89.4	%		100.0	%
65	Graphics Drive			—		—		72,300		46,386		64.2	%		64.2	%		64.2	%		64.2	%		64.2	%
66	Landmark at Eastview			273,000		—		800,671		652,304		81.5	%		81.5	%		81.5	%		81.5	%		81.7	%
67	Landmark at Eastview II			—		—		360,520		360,520		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
68	Landmark at Eastview III	ü		—		297,000		—		297,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
69	One Research Way			—		—		50,581		50,581		100.0	%		100.0	%		100.0	%		100.0	%		—

	Total New York			323,000		297,000		1,491,927		1,592,696		89.0	%		89.0	%		89.0	%		89.0	%		87.3	%

	Maryland
70	Beckley Street			—		—		77,225		77,225		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
71	9900 Belward Campus Drive			—		—		49,317		41,816		84.8	%		84.8	%		84.8	%		84.8	%		65.3	%
72	9901 Belward Campus Drive			—		—		57,152		57,110		99.9	%		99.9	%		99.9	%		99.9	%		99.9	%
73	9920 Belward Campus Drive			—		—		51,181		51,181		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
74	9704 Medical Center Drive			—		—		122,600		122,600		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
75	9708-9714 Medical Center Drive			—		—		92,125		50,075		54.4	%		54.2	%		54.2	%		17.4	%		17.4	%
76	1701 / 1711 Research Boulevard			—		—		104,743		104,743		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
77	Shady Grove Road			500,000		—		635,058		635,058		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
78	Tributary Street			—		—		91,592		91,592		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
79	University of Maryland BioPark I			—		—		76,542		75,567		98.7	%		98.7	%		98.5	%		98.5	%		100.0	%
80	University of Maryland BioPark II			—		—		235,333		221,566		94.1	%		97.5	%		98.0	%		98.0	%		93.7	%
81	University of Maryland BioPark Garage			—		—		638 Stalls		638 Stalls		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
82	50 West Watkins Mill Road			—		—		57,410		20,000		34.8	%		34.8	%		34.8	%		34.8	%		34.8	%
83	55 / 65 West Watkins Mill Road			—		—		82,405		39,505		47.9	%		47.9	%		100.0	%		100.0	%		100.0	%

	Total Maryland			500,000		—		1,732,683		1,588,038		91.7	%		92.1	%		95.4	%		93.7	%		92.8	%

LOGO

PROPERTY LISTING

MARCH 31, 2015


		Excluded From	Rentable Square Feet						Leased
		Same Property	Land		Active New		Operating		Square		Percent Leased (1)
	Property	Analysis	Bank		Construction		Portfolio		Feet		3/31/15			12/31/14			9/30/14			6/30/14			3/31/14
	Pennsylvania
84	George Patterson Boulevard			—		—		71,500		71,500		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
85	Hershey Center for Applied Research			—		—		80,867		78,117		96.6	%		95.7	%		96.9	%		94.9	%		87.6	%
86	3711 Market Street (3)			—		—		154,793		147,476		95.3	%		96.2	%		95.5	%		95.5	%		94.5	%
87	3737 Market Street (4)	ü		—		—		334,305		334,305		100.0	%		82.4	%		82.4	%		80.8	%		80.8	%
88	Phoenixville Pike			—		—		104,400		43,659		41.8	%		41.8	%		41.8	%		37.5	%		37.5	%
89	Spring Mill Drive			—		—		76,561		66,176		86.4	%		80.5	%		80.5	%		82.5	%		82.5	%
90	900 Uniqema Boulevard			—		—		11,293		—		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
91	1000 Uniqema Boulevard			—		—		59,821		—		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

	Total Pennsylvania			—		—		893,540		741,233		83.0	%		75.9	%		75.9	%		74.8	%		74.0	%

	Seattle
92	Elliott Avenue			—		—		151,194		96,781		64.0	%		64.0	%		56.0	%		56.0	%		56.0	%
93	500 Fairview Avenue	ü		—		122,702		—		46,407		37.8	%		37.8	%		20.5	%		20.5	%		0.0	%
94	530 Fairview Avenue			—		—		101,118		100,501		99.4	%		100.0	%		100.0	%		100.0	%		100.0	%
95	Monte Villa Parkway			—		—		51,000		30,167		59.2	%		59.2	%		59.2	%		59.2	%		59.2	%
96	Westlake	ü		—		—		116,214		115,152		99.1	%		—			—			—			—
97	217th Place			50,000		—		67,799		67,799		100.0	%		62.9	%		100.0	%		62.9	%		62.9	%

	Total Seattle			50,000		122,702		487,325		456,807		74.9	%		64.2	%		57.5	%		57.5	%		69.3	%

	North Carolina
98	Paramount Parkway			—		—		61,603		61,603		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
99	Patriot Drive			—		—		48,394		48,394		100.0	%		100.0	%		100.0	%		100.0	%		83.8	%
100	Piedmont Triad Research - Wake 90			—		—		475,742		460,891		96.9	%		94.6	%		87.3	%		87.3	%		87.4	%
101	Wake 60	ü		—		283,250		—		167,947		59.3	%		59.3	%		—			—			—
102	Wake Forest Biotech Place			—		—		242,000		242,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
103	Weston Parkway			—		—		30,589		30,589		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

	Total North Carolina			—		283,250		858,328		1,011,424		88.6	%		87.6	%		92.9	%		92.9	%		92.1	%

	Cambridge, UK
104	Granta Park			138,000		—		472,234		470,015		99.5	%		99.5	%		99.5	%		99.5	%		99.5	%
105	430 Cambridge Science Park	ü		—		42,410		—		42,410		100.0	%		100.0	%		100.0	%		100.0	%		—

	Total Cambridge, UK			138,000		42,410		472,234		512,425		99.6	%		99.6	%		99.6	%		99.6	%		99.5	%

	University Related
106	BRDG Park at Danforth Plant Science Center			—		—		109,731		99,386		90.6	%		90.6	%		90.6	%		85.0	%		83.1	%
107	100 College Street (5)	ü		—		510,419		—		505,683		99.1	%		99.1	%		99.1	%		99.1	%		—
108	4320 Forest Park Avenue			—		—		152,403		152,403		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
109	300 George Street (5)	ü		—		—		518,940		511,971		98.7	%		98.7	%		98.7	%		98.7	%		—
110	Heritage @ 4240	ü		—		—		185,207		166,623		90.0	%		89.0	%		89.0	%		89.0	%		64.6	%
111	Innovation Research Park at ODU I			—		—		95,634		86,102		90.0	%		90.0	%		90.0	%		90.0	%		91.8	%
112	Innovation Research Park at ODU II			—		—		95,634		79,072		82.7	%		82.7	%		82.7	%		75.8	%		75.0	%
113	Trade Centre Avenue			—		—		78,023		78,023		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
114	University of Miami Life Science & Technology Park			—		—		258,681		176,943		68.4	%		64.7	%		64.4	%		64.9	%		65.3	%
115	University Tech Park at IIT			—		—		129,178		129,178		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
116	Walnut Street			—		—		149,984		149,984		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

	Total University Related			—		510,419		1,773,415		2,135,368		93.5	%		93.0	%		93.0	%		92.5	%		83.6	%

	Total Consolidated Portfolio			2,341,000		1,995,301		15,569,557		15,328,712		87.3	%		89.2	%		90.2	%		89.3	%		88.7	%

	Unconsolidated Partnership Portfolio
117	BioPark Fremont	ü		100,000		—		—		—		—			—			—			—			—
118	McKellar Court	ü		—		—		72,863		72,863		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
119	350 E. Kendall Street Garage (Kendall F)	ü		—		—		1,409 Stalls		1,136 Stalls		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
120	650 E. Kendall Street (Kendall B)	ü		—		—		282,217		281,892		99.9	%		99.9	%		99.9	%		71.5	%		71.5	%

	Total Unconsolidated Partnership Portfolio			100,000		—		355,080		354,755		99.9	%		99.9	%		99.9	%		77.3	%		77.3	%

	Land Bank (6)
121	Chesterfield	ü		274,000		—		—		—		—			—			—			—			—
122	Drexel	ü		2,271,000		—		—		—		—			—			—			—			—
123	Eccles Avenue	ü		265,000		—		—		—		—			—			—			—			—
124	Gateway Business Park II	ü		600,000		—		—		—		—			—			—			—			—
125	King of Prussia	ü		547,000		—		—		—		—			—			—			—			—
126	311 South Sarah	ü		300,000		—		—		—		—			—			—			—			—
127	University of Maryland BioPark III	ü		200,000		—		—		—		—			—			—			—			—

	Total Land Bank			4,457,000		—		—		—		—			—			—			—			—

	Total Portfolio			6,898,000		1,995,301		15,924,637		15,683,467		87.5	%		89.4	%		90.4	%		89.1	%		88.5	%

(1)	Percentage leased excludes estimated square feet in the Land Bank.

(2)	The Company owns 87.5% of the limited liability company that owns the Ardenwood Venture property.

(3)	The Company owns 60% of the limited liability company that owns the 3711 Market Street property.

(4)	The Company owns 68% of the limited liability company that owns the 3737 Market Street property.

(5)	The Company owns 93% of the limited liability companies that own the 100 College Street and 300 George Street properties.

(6)	Included in Land Bank estimates on page 27.

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DEVELOPMENT AND REDEVELOPMENT

MARCH 31, 2015

(Dollars in thousands)


Active Development: Property	Market	Rentable Square Feet		Pre-Leased Square Feet		Percent Pre-Leased			Investment to Date (1)		Cost to Complete		Sub-Total		Capitalized Costs (2)		Estimated Total Investment (2)(3)		Estimated In-Service Date (4)
Active New Construction:
100 College Street	University Related		510,419		505,683		99.1	%	$	119,500	$	71,500	$	191,000	$	—	$	191,000	Q4 2015
i3	San Diego		316,000		—		—			36,700		129,900		166,600		14,900		181,500	Q3 2017
Landmark at Eastview III	New York		297,000		297,000		100.0	%		123,900		45,000		168,900		7,600		176,500	Q4 2015
Lincoln Centre (5)	San Francisco		360,000		360,000		100.0	%		28,400		105,600		134,000		15,700		149,700	Q3 2017 & Q3 2018
500 Fairview Avenue	Seattle		122,702		46,407		37.8	%		17,100		49,900		67,000		7,500		74,500	Q1 2016
450 Kendall Street (Kendall G)	Boston		63,520		14,511		22.8	%		33,000		21,000		54,000		4,000		58,000	Q2 2015
Wake 60 (6)	North Carolina		283,250		167,947		59.3	%		9,200		44,100		53,300		2,000		55,300	Q3 2016
430 Cambridge Science Park	United Kingdom		42,410		42,410		100.0	%		4,000		18,700		22,700		—		22,700	Q3 2015

Total / weighted-average			1,995,301		1,433,958		71.9	%	$	371,800	$	485,700	$	857,500	$	51,700	$	909,200


Active Redevelopment: Property	Market	Rentable Square Feet		Leased Square Feet		Percent Leased			Investment to Date (1)		Cost to Complete		Sub-Total		Capitalized Costs (2)		Estimated Total Investment (2)(3)		Estimated In-Service Date (4)
Active Redevelopment:
Sidney Street/40 Erie Street	Boston		292,758		—		—		$	103,700	$	74,000	$	177,700	$	11,300	$	189,000	Q4 2015 - 2017


	Estimated
Market	Land Bank
Pennsylvania		2,818,000
San Francisco		2,195,000
Maryland		800,000
New York		323,000
University Related		300,000
North Carolina		274,000
Cambridge, UK		138,000
Seattle		50,000

Total		6,898,000

(1)	Includes amounts paid for acquiring the property, landlord improvements and tenant improvement allowances, but excludes any amounts accrued, and payroll, interest, ground rent. or operating expenses capitalized, through March 31, 2015.

(2)	Includes both already incurred and forecasted capitalized costs of interest, operating expenses, property taxes, payroll and ground rent.

(3)	Includes construction costs associated with speculative leasing.

(4)

Management’s estimate of the time in which construction is substantially completed. A project is considered substantially complete and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity. Upon completion, management expects the property to enter the Same Property Portfolio one year subsequent to the in-service date.

(5)	Phase I of the project is comprised of 200,000 square feet and is estimated to be substantially completed in Q3 2017. Phase II comprising 160,000 square feet is estimated to be substantially completed in Q3 2018.

(6)	Investment through March 31, 2015 of $9.2 million is partially offset by $5.2 million in tax credit funding received. Estimated Total Investment is net of tax credit benefits.

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CAPITAL EXPENDITURES

MARCH 31, 2015

(Dollars in thousands)


Capital Expenditures:			Three Months Ended
			3/31/15			12/31/14			9/30/14			6/30/14			3/31/14

Active new construction			$	32,758		$	68,155		$	71,598		$	69,488		$	40,906
Tax credit funding receipts, net of deferred costs				—			(26,232	)		—			(22,557	)		—
Land bank				3,618			6,139			6,998			3,747			3,940
Active redevelopment				3,908			3,251			6,391			3,349			1,185
Tenant improvements - first generation (1)				14,534			10,386			13,304			8,614			9,175
Recurring capital expenditures and second generation tenant improvements (1) (2)				15,782			22,591			17,007			21,553			7,731
Other capital				153			3,217			5,729			3,095			6,906

Total capital expenditures			$	70,753		$	87,507		$	121,027		$	87,289		$	69,843


Capitalized Interest:	Investment		Three Months Ended
	to Date (3)		3/31/15			12/31/14			9/30/14			6/30/14			3/31/14

Active new construction	$	371,800	$	3,395		$	2,634		$	1,983		$	2,043		$	1,284
Active redevelopment		103,700		276			—			96			64			64
Recently delivered development projects (4)		28,160		129			373			738			282			592
Other portfolio improvements (5)		155,360		1,419			1,506			1,600			1,405			1,018
Land bank		183,007		1,562			1,630			1,703			1,629			1,234

Total	$	842,027	$	6,781		$	6,143		$	6,120		$	5,423		$	4,192

Average interest rate capitalized				3.95	%		3.96	%		3.97	%		3.94	%		4.64	%

(1)	For definitions of first and second generation leases, see page 38.

(2)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. For a definition of recurring capital expenditures, see page 38.

(3)	Includes amounts paid for acquiring the property, landlord improvements and tenant improvement allowances, but for Active New Construction and Active Redevelopment properties excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through March 31, 2015.

(4)	Includes Heritage @4240, 3737 Market Street and Piedmont Triad Research - Wake 90.

(5)	Includes improvements on operating properties, including major tenant improvement projects on properties which are not considered to be in Active New Construction, Active Redevelopment or Land Bank during the three months ended December 31, 2014.

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LEASE EXPIRATIONS

MARCH 31, 2015

The weighted-average remaining lease term is 8.3 years for the total portfolio.


						Current (1)							Expiration (2)							GAAP
Expiration	Leased Square Feet		Percent of Leased Square Feet			Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet		Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet		Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet
						(In thousands)							(In thousands)							(In thousands)
Month-to-month		67,047		0.4	%	$	2,861		0.5	%	$	42.67	$	3,333		0.5	%	$	49.71	$	3,059		0.5	%	$	45.62
Second quarter 2015		196,977		1.3	%		6,395		1.2	%		32.47		6,413		1.0	%		32.56		6,339		1.1	%		32.18
Third quarter 2015		237,991		1.5	%		6,949		1.3	%		29.20		6,968		1.1	%		29.28		6,571		1.2	%		27.61
Fourth quarter 2015		60,875		0.4	%		1,676		0.3	%		27.53		1,676		0.3	%		27.53		1,638		0.3	%		26.91

2015		495,843		3.2	%		15,020		2.8	%		30.29		15,057		2.4	%		30.37		14,548		2.6	%		29.34
2016		886,820		5.7	%		31,292		5.8	%		35.29		32,015		5.1	%		36.10		30,094		5.4	%		33.93
2017		949,444		6.1	%		28,780		5.3	%		30.31		30,310		4.8	%		31.92		27,565		4.9	%		29.03
2018		1,896,097		12.1	%		83,006		15.4	%		43.78		85,817		13.7	%		45.26		76,811		13.8	%		40.51
2019		1,004,334		6.4	%		28,311		5.2	%		28.19		30,715		4.9	%		30.58		28,726		5.2	%		28.60
2020		1,049,623		6.7	%		32,132		5.9	%		30.61		35,936		5.7	%		34.24		32,345		5.8	%		30.82
2021		473,748		3.0	%		17,120		3.2	%		36.14		19,322		3.1	%		40.79		17,586		3.2	%		37.12
2022		326,525		2.1	%		8,320		1.5	%		25.48		10,022		1.6	%		30.69		8,730		1.6	%		26.74
2023		1,542,803		9.8	%		62,347		11.5	%		40.41		70,206		11.2	%		45.51		63,393		11.4	%		41.09
2024		627,032		4.0	%		19,714		3.7	%		31.44		23,451		3.7	%		37.40		20,404		3.7	%		32.54
Thereafter		6,364,151		40.5	%		211,196		39.2	%		33.19		271,906		43.3	%		42.72		233,844		41.9	%		36.74

Total / weighted-average		15,683,467		100.0	%	$	540,099		100.0	%	$	34.44	$	628,090		100.0	%	$	40.05	$	557,105		100.0	%	$	35.52

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(1)	Current annualized base rent (CABR) is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)	Annualized base rent at expiration is the monthly contractual rent as of the date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

(3)	For a definition of “forward leased”, see page 38.

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EXPIRATIONS BY MARKET

MARCH 31, 2015


	Leased Square Feet
Expiration	Boston		San Francisco		San Diego		New York		Maryland		Pennsylvania		Seattle		North Carolina		Cambridge, UK		University Related		Total
Month-to-month		—		1,500		12,843		6,230		8,610		444		—		—		1,038		36,382		67,047
2015		85,923		94,973		123,549		2,833		28,453		36,201		—		16,492		23,403		84,016		495,843
2016		106,973		246,012		54,497		115,603		31,069		25,834		12,124		30,589		1,103		263,016		886,820
2017		130,965		255,393		224,265		90,063		107,288		24,440		34,581		7,853		28,057		46,539		949,444
2018		1,147,276		99,067		352,249		82,124		61,336		14,389		—		15,117		—		124,539		1,896,097
2019		155,305		228,854		90,093		—		275,328		87,497		—		8,932		25,245		133,080		1,004,334
2020		210,705		251,199		66,739		34,371		175,785		118,727		1,744		19,261		136,434		34,658		1,049,623
2021		107,824		50,327		26,072		40,914		5,929		4,592		2,695		71,663		160,290		3,442		473,748
2022		17,040		197,726		20,235		27,524		4,599		7,311		1,733		—		—		50,357		326,525
2023		571,792		593,764		219,636		68,039		33,843		8,542		—		—		26,294		20,893		1,542,803
2024		75,903		—		—		232,049		11,120		—		34,980		23,932		64,617		184,431		627,032
Thereafter		291,994		849,373		685,410		892,946		844,678		413,256		368,950		817,585		45,944		1,154,015		6,364,151

Total		2,901,700		2,868,188		1,875,588		1,592,696		1,588,038		741,233		456,807		1,011,424		512,425		2,135,368		15,683,467


	Current Annualized Base Rent at Expiration (1)
Expiration	Boston		San Francisco		San Diego		New York		Maryland		Pennsylvania		Seattle		North Carolina		Cambridge, UK		University Related		Total
	(in thousands)
Month-to-month	$	—	$	14	$	342	$	13	$	57	$	12	$	—	$	—	$	—	$	2,896	$	3,333
2015		3,581		1,975		4,272		29		861		932		3		334		952		2,117		15,057
2016		6,318		8,385		1,375		3,656		915		825		630		634		51		9,226		32,015
2017		5,685		6,194		8,087		2,687		3,203		748		1,405		133		997		1,173		30,310
2018		63,129		2,898		10,237		2,402		3,096		562		—		343		—		3,150		85,817
2019		7,886		5,941		2,708		—		7,448		2,017		—		217		1,103		3,395		30,715
2020		13,342		7,225		2,441		1,224		3,205		3,299		80		298		3,859		963		35,936
2021		8,348		984		970		757		240		124		84		1,829		5,888		98		19,322
2022		1,053		6,212		1,007		—		162		270		72		—		—		1,245		10,022
2023		44,355		9,833		11,017		2,397		722		279		—		—		915		688		70,206
2024		4,739		—		—		8,019		503		—		942		314		2,040		6,892		23,451
Thereafter		20,892		39,743		36,206		48,209		37,976		15,526		20,090		18,309		1,560		33,396		271,906

Total	$	179,328	$	89,403	$	78,661	$	69,394	$	58,388	$	24,593	$	23,307	$	22,411	$	17,366	$	65,240	$	628,090

(1)	Annualized base rent at expiration is the monthly contractual rent as of date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

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FUTURE LEASE COMMENCEMENTS

MARCH 31, 2015

(Dollars in thousands)


	Annualized Base Rent (1)
	Operating				Development				Total
Expected Commencement Quarter (1)	GAAP (2)		Cash (3)		GAAP (2)		Cash (3)		GAAP (2)		Cash (3)
2Q15	$	6,839	$	10,905	$	745	$	670	$	7,584	$	11,574
3Q15		14,195		17,769		1,627		—		15,821		17,769
4Q15		5,112		3,272		26,713		23,752		31,825		27,024
2016		5,042		8,058		7,633		8,483		12,676		16,542
2017		—		—		7,751		6,572		7,751		6,572
2018		—		—		5,850		—		5,850		—
2019		—		—		—		5,258		—		5,258

	$	31,189	$	40,004	$	50,319	$	44,735	$	81,508	$	84,739


	Leased Square Feet (1)
	Operating				Development				Total
Expected Commencement Quarter (1)	GAAP (2)		Cash (3)		GAAP (2)		Cash (3)		GAAP (2)		Cash (3)
2Q15		261,840		447,744		14,511		14,511		276,351		462,255
3Q15		375,098		450,925		42,410		—		417,508		450,925
4Q15		156,520		180,141		707,411		707,411		863,931		887,552
2016		114,651		191,436		309,626		352,036		424,277		543,472
2017		—		—		200,000		200,000		200,000		200,000
2018		—		—		160,000		—		160,000		—
2019		—		—		—		160,000		—		160,000

		908,109		1,270,246		1,433,958		1,433,958		2,342,067		2,704,204

(1)	Current estimates of future lease commencement timing. Actual results may vary from current estimates. Excludes unconsolidated joint ventures.

(2)	The annualized GAAP monthly rent (GABR).

(3)	The annualized first monthly cash rent payment due (CABR).

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20 LARGEST TENANTS

MARCH 31, 2015

BioMed’s properties were leased to 366 tenants.


	Tenant	Leased Square Feet		Percent of Leased Sq Ft			Annualized Base Rent Current (1) (In thousands)		Annualized Base Rent per Leased Sq Ft Current		Percent of Annualized Base Rent Current Total Portfolio			Lease Expiration
1	Regeneron Pharmaceuticals, Inc. (2)		1,003,366		6.4	%		41,868	$	41.73		7.8	%		Multiple
2	Beth Israel Deaconess Medical Center, Inc.		362,364		2.3	%		26,823		74.02		5.0	%		June 2023
3	GlaxoSmithKline plc (3)		635,058		4.0	%		23,140		36.44		4.3	%		May 2026
4	Sanofi (4)		418,003		2.7	%		23,100		55.26		4.3	%		Multiple
5	Vertex Pharmaceuticals Incorporated (5)		371,920		2.4	%		21,337		57.37		4.0	%		Multiple
6	Illumina, Inc. (6)		581,193		3.7	%		21,071		36.25		3.9	%		Multiple
7	Ironwood Pharmaceuticals, Inc.		311,702		2.0	%		15,411		49.44		2.9	%		January 2018
8	Children’s Hospital Corporation (7)		207,909		1.3	%		15,354		73.85		2.8	%		April 2023
9	Alexion Pharmaceuticals, Inc. (8)		413,545		2.6	%		10,428		25.22		1.9	%		Multiple
10	Wake Forest University (9)		540,117		3.4	%		9,912		18.35		1.8	%		Multiple
11	Baxter Healthcare Corporation		156,804		1.0	%		9,095		58.00		1.7	%		January 2027
12	Array BioPharma, Inc. (10)		228,007		1.5	%		8,133		35.67		1.5	%		Multiple
13	Yale University (11)		397,402		2.5	%		8,027		20.20		1.5	%		Multiple
14	Arena Pharmaceuticals, Inc.		264,557		1.7	%		7,939		30.01		1.5	%		May 2027
15	MedImmune, Inc. (12)		245,808		1.6	%		7,920		32.22		1.5	%		Multiple
16	Isis Pharmaceuticals, Inc. (13)		204,704		1.3	%		7,268		35.50		1.3	%		Multiple
17	Life Technologies Corporation		204,887		1.3	%		7,040		34.36		1.3	%		March 2028
18	Bristol-Myers Squibb Company (14)		237,435		1.5	%		7,023		29.58		1.3	%		Multiple
19	Momenta Pharmaceuticals, Inc.		104,678		0.7	%		6,176		59.00		1.1	%		August 2016
20	Penn Presbyterian Medical Center		269,238		1.7	%		6,096		22.64		1.1	%		August 2034

	Total / weighted-average (15)		7,158,697		45.6	%	$	283,161	$	39.55		52.5	%

(1)	Based on current annualized base rent. Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)

Includes build-to-suit transaction to construct two new buildings pre-leased to Regeneron for a 15 year term totaling approximately 297,000 square feet at Landmark at Eastview. 2,833 square feet will expire in June 2015, 7,568 square feet in December 2016, 82,124 square feet in December 2018, 232,049 square feet in June 2024 and 678,792 square feet in June 2029.

(3)	The Company’s tenant is Human Genome Sciences (HGS), a wholly owned subsidiary of GlaxoSmithKline plc (GSK).

(4)	343,000 square feet expire July 2018 and 75,003 square feet expire September 2018.

(5)	81,204 square feet are leased with a subsidiary of Vertex Pharmaceuticals Incorporated. 290,716 square feet expire April 2018, and 81,204 square feet expire December 2018.

(6)	28,057 square feet will expire in June 2017, 193,136 square feet in October 2023, 200,000 square feet in June 2032, and 160,000 square feet in June 2033.

(7)	This tenant guarantees rent on 49,866 square feet leased at the Center for Life Science \| Boston.

(8)	3,134 square feet are currently month-to-month and 410,411 square feet expire November 2027.

(9)	242,000 square feet expire December 2027, 119,200 square feet expire March 2029, and 167,947 square feet expire in June 2031. Wake Forest University is the sole member of the tenant, Wake Forest University Health Sciences.

(10)	149,984 square feet expire July 2016 and 78,023 square feet expire August 2016.

(11)

9,330 square feet expire June 2015, 4,680 square feet expire in July 2015, 8,478 square feet expire May 2016, 10,578 square feet expire February 2018, 15,436 square feet expire August 2020, 20,143 square feet expire February 2022, 19,912 square feet expire May 2025, 4,796 square feet expire October 2025, 208,777 square feet expire April 2032 and 95,272 square feet expire February 2036.

(12)	24,437 square feet expire June 2015, 21,576 square feet expire December 2015, 39,505 square feet expire December 2022 and 160,290 square feet expire in December 2021.

(13)	176,000 square feet expire July 2031 and 28,704 square feet expire December 2031.

(14)	30,167 square feet expire April 2024, 194,108 square feet expire May 2025 and 13,160 square feet expire in July 2016.

(15)	Without regard to any renewal options.

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LEASING ACTIVITY (1)

MARCH 31, 2015


	Leased Square Feet			Current Annualized Base Rent per Leased Sq Ft			GAAP Annualized Base Rent per Leased Sq Ft			Forward-Leased Square Feet			Current Annualized Base Rent per Forward- Leased Sq Ft			GAAP Annualized Base Rent per Forward- Leased Sq Ft
Leased Square Feet as of December 31, 2014		15,669,843									179,149
Acquisitions		115,152		$	41.32		$	46.25
Expirations		(137,441	)		31.65			30.37
Terminations		(759,588	)		40.67			37.10
Forward-lease delivery (2)		18,396			49.00			50.06			(18,396	)	$	49.00		$	50.06
Renewals and extensions		84,392			32.96			33.25
New leases - 1st generation (2)		160,674			22.36			25.17
New leases - 2nd generation (2)		532,039			37.08			40.21			3,695			17.40			17.40

Leased Square Feet as of March 31, 2015		15,683,467									164,448


	Three Months Ended															Year Ended
Leased Square Feet	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			12/31/14
Renewals and extensions		84,392			219,817			277,313			319,067			173,117			989,314
New leases		696,408			656,157			380,433			493,152			307,332			1,837,074

Gross Leasing Activity		780,800			875,974			657,746			812,219			480,449			2,826,388

Expirations		(137,441	)		(423,634	)		(385,365	)		(811,921	)		(207,946	)		(1,828,866	)
Terminations		(759,588	)		(9,189	)		(106,629	)		(167,249	)		(58,742	)		(341,809	)
Forward-lease delivery (2)		18,396			—			103,192			117,378			8,554			229,124
Renewals and extensions		84,392			219,817			277,313			319,067			173,117			989,314
New leases - 1st & 2nd generation (2)		692,713			92,158			331,153			307,834			181,120			912,265
New leases - pre-leased (3)		—			563,999			—			55,084			—			619,083

Net Absorption (4)		(101,528	)		443,151			219,664			(179,807	)		96,103			579,111

Operating portfolio		(101,528	)		(120,848	)		219,664			(204,673	)		10,628			(95,229	)
Active redevelopment		—			—			—			—			—			—
Active new construction		—			563,999			5,492			24,866			85,475			679,832

Net Absorption (4)		(101,528	)		443,151			225,156			(179,807	)		96,103			584,603

Operating portfolio		780,800			311,975			652,254			787,353			394,974			2,146,556
Active redevelopment		—			—			—			—			—			—
Active new construction		—			563,999			5,492			24,866			85,475			679,832

Gross Leasing Activity		780,800			875,974			657,746			812,219			480,449			2,826,388

(1)	Leasing activity for leases signed during the periods presented, which may be different than the period of actual occupancy.

(2)	For definitions of first and second generation leases and forward-leases, see page 38.

(3)	For definitions of pre-leased leases, see page 38.

(4)	Net absorption is calculated as total square footage of new leases, renewals and extensions, and forward-lease deliveries, less expirations and terminated square feet for the given period.

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LEASING DATA

MARCH 31, 2015


	Three Months Ended															Year Ended
	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			12/31/14
Renewals and Extensions (1)
Number of renewals		16			14			14			16			10			54
Square feet		84,392			219,817			277,313			319,067			173,117			989,314
Percentage change - CABR (2)		6.4	%		-5.5	%		0.4	%		-13.2	%		9.1	%		-1.5	%
Percentage change - GABR (2)		11.4	%		-1.5	%		3.4	%		-8.1	%		17.0	%		3.4	%
Free rent months		3.4			1.1			—			0.2			—			2.8
Weighted-average lease term years		4.8			6.4			7.2			8.8			7.8			7.6
Tenant improvement costs per square foot (3)	$	—		$	8.78		$	1.50		$	1.05		$	19.11		$	6.06
Landlord costs per square foot (3)		0.93			0.87			0.18			1.27			0.47			0.74
Leasing commission costs per square foot (3)		1.55			4.61			1.46			2.17			3.80			2.80

Total tenant improvement, landlord and leasing commission costs psf	$	2.48		$	14.26		$	3.15		$	4.49		$	23.38		$	9.60

New Leases - 1st Generation (4)
Number of leases		9			5			12			16			13			46
Square feet		160,674			40,107			152,380			193,532			133,811			519,830
Free rent months		3.3			7.8			0.2			4.6			2.4			3.0
Weighted-average lease term years		12.6			9.4			9.5			8.5			12.9			10.0
Tenant improvement costs per square foot (3)	$	45.04		$	87.64		$	62.99		$	56.63		$	60.47		$	61.88
Landlord costs per square foot (3)		0.09			0.13			11.44			12.07			—			7.86
Leasing commission costs per square foot (3)		9.16			6.57			12.60			5.27			12.45			9.37

Total tenant improvement, landlord and leasing commission costs psf	$	54.28		$	94.35		$	87.04		$	73.97		$	72.93		$	79.11

New Leases - 2nd Generation (4)
Number of leases		24			11			21			28			36			96
Square feet		535,734			52,051			228,053			244,536			173,521			698,161
Percentage change - CABR (2)		-5.9	%		66.0	%		15.3	%		-29.1	%		-21.5	%		-6.7	%
Percentage change - GABR (2)		14.7	%		50.4	%		16.0	%		-17.9	%		-13.9	%		-0.2	%
Free rent months		1.5			0.4			5.8			0.8			4.7			3.4
Weighted-average lease term years		8.6			3.9			9.4			6.8			8.2			7.8
Tenant improvement costs per square foot (3)	$	39.77		$	23.59		$	87.14		$	37.34		$	103.64		$	69.06
Landlord costs per square foot (3)		4.67			34.82			1.40			2.40			—			3.05
Leasing commission costs per square foot (3)		10.77			5.16			12.19			9.59			5.88			9.19

Total tenant improvement, landlord and leasing commission costs psf	$	55.21		$	63.56		$	100.74		$	49.32		$	109.51		$	81.30

New Leases - Pre-Leased
Number of leases		—			4			—			3			—			7
Square feet		—			563,999			—			55,084			—			619,083
Free rent months		—			3.5			—			2.7			—			3.4
Weighted-average lease term years		—			14.6			—			12.1			—			14.4
Tenant improvement costs per square foot (3)	$	—		$	84.49		$	—		$	67.75		$	—		$	83.00
Landlord costs per square foot (3)		—			205.82			—			98.42			—			196.27
Leasing commission costs per square foot (3)		—			10.62			—			18.29			—			11.30

Total tenant improvement, landlord and leasing commission costs psf	$	—		$	300.94		$	—		$	184.46		$	—		$	290.57

Total
Number of leases and renewals		49			34			47			63			59			203
Square feet		780,800			875,974			657,746			812,219			480,449			2,826,388
Free rent months		2.0			2.9			2.1			1.6			2.4			2.2
Weighted-average lease term years		9.0			11.7			8.5			8.3			9.4			9.6
Tenant improvement costs per square foot (3)	$	36.56		$	62.02		$	45.44		$	29.74		$	61.16		$	48.74
Landlord costs per square foot (3)		3.32			134.81			3.21			10.77			0.17			45.27
Leasing commission costs per square foot (3)		9.44			8.60			7.76			6.24			6.96			7.45

Total tenant improvement, landlord and leasing commission costs psf	$	49.32		$	205.43		$	56.42		$	46.75		$	68.29		$	101.46

(1)	Does not include retained tenants that have relocated to new space or expanded into new space.

(2)	Excludes retail leases, leases less than 5,000 square feet, and leases for space unoccupied for a period greater than 24 months.

(3)	Based on management estimates. Assumes all TI, landlord and commission costs are paid in the calendar year in which the lease is executed, which may be different than the year in which they are actually paid.

(4)	Includes forward-leasing activity and retained tenants that have relocated or expanded into new space within the Company’s portfolio. For definitions of first and second generation leases, see page 38.

LOGO

SQUARE FOOTAGE ROLLFORWARD

MARCH 31, 2015

(Dollars in thousands)


				Active New		Active
Rentable Square Footage	Operating			Construction		Redevelopment		Total
Rentable square footage as of December 31, 2014		15,846,213			1,679,301		—		17,525,514
Properties removed from operating portfolio		(55,098	)		—		—		(55,098	)
Acquisitions		116,214			—		—		116,214
Remeasurements		17,308			—		—		17,308
New ground-up development		—			316,000		—		316,000

Rentable square footage as of March 31, 2015		15,924,637			1,995,301		—		17,919,938


				Active New		Active
Leased Square Footage	Operating			Construction		Redevelopment		Total
Leased square footage as of December 31, 2014		14,235,885			1,433,958		—		15,669,843
Acquisitions		115,152			—		—		115,152
Expirations		(137,441	)		—		—		(137,441	)
Terminations		(759,588	)		—		—		(759,588	)
Renewals and extensions		84,392			—		—		84,392
New leases - 1st generation (1)		160,674			—		—		160,674
New leases - 2nd generation (1)		532,039			—		—		532,039
Forward-lease delivery (1)		18,396			—		—		18,396

Leased square footage as of March 31, 2015		14,249,509			1,433,958		—		15,683,467


				Active New		Active
Available Square Footage	Operating			Construction		Redevelopment		Total
Available square footage as of December 31, 2014		1,610,328			245,343		—		1,855,671
Properties removed from operating portfolio		(55,098	)		—		—		(55,098	)
Acquisitions		1,062			—		—		1,062
Remeasurements		17,308			—		—		17,308
New ground-up development		—			316,000		—		316,000
Net absorption		101,528			—		—		101,528

Available square footage as of March 31, 2015		1,675,128			561,343		—		2,236,471

(1)	For definitions of first and second generation leases and forward-leases, see page 38.

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ACQUISITIONS

MARCH 31, 2015

Acquisitions Detail for 2015:

Rentable

Percent

Square

Leased at

Property

Market

Closing Date

Feet

Investment

Acquisition

(In thousands)

First Quarter 2015

Westlake

Seattle

February 11, 2015

116,214

89,700

99.1

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NON-GAAP FINANCIAL MEASURE DEFINITIONS

MARCH 31, 2015

This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of other REITs, and therefore, may not be comparable. The non-GAAP measures should not be considered an alternative to net income as an indicator of our performance and should be considered only a supplement to cash flows from operating, investing or financing activities as a measure of liquidity, computed in accordance with GAAP.

FFO, CFFO and AFFO

We present funds from operations, or FFO, FFO excluding acquisition-related expenses, or CFFO, and adjusted funds from operations, or AFFO, available to common shares and OP units because we consider them to be important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO, CFFO and AFFO when reporting their results.

FFO, CFFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO, CFFO and AFFO exclude depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, they provide performance measures that, when compared year over year, reflect the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable property, impairment charges on depreciable real estate, real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures.

We calculate CFFO by adding acquisition-related expenses to FFO. We calculate AFFO by adding to CFFO: (a) non-cash revenues and expenses, (b) recurring capital expenditures and second generation tenant improvements and (c) leasing commissions.

Our computations may differ from the methodologies for calculating FFO, CFFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO, CFFO and AFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO, CFFO and AFFO should not be considered alternatives to net income/(loss) (computed in accordance with GAAP) as indicators of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as indicators of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. FFO, CFFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures of our operations.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA), and Adjusted EBITDA

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA by adding to EBITDA: (a) noncontrolling interests in our operating partnership, (b) non-cash adjustments for securities, (c) losses from sales of real estate, (d) executive severance, and (e) acquisition-related expenses, and by subtracting from EBITDA gains from sales of real estate. Management uses EBITDA and Adjusted EBITDA as indicators of our ability to incur and service debt. In addition, we consider EBITDA and Adjusted EBITDA to be appropriate supplemental measures of our performance because they eliminate depreciation and interest, which permits investors to view income from operations without the impact of non-cash depreciation or the cost of debt. However, because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility is limited.

Coverage Ratios

We present interest and fixed charge ratios as supplemental liquidity measures. Management uses these ratios as indicators of our financial flexibility to service current interest expense and debt amortization from current cash net operating income. In addition, we believe that these coverage ratios represent common metrics used by securities analysts, investors and other interested parties to evaluate our ability to service fixed cash payments. However, because these ratios are derived from Adjusted EBITDA, their utility is limited by the same factors that limit the usefulness of Adjusted EBITDA as a liquidity measure.

Net Operating Income (NOI)

We use net operating income, or NOI, as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. We compute NOI by adding or subtracting certain items from net income, noncontrolling interest in the operating partnership, gains/losses from investment in unconsolidated partnerships, interest expense, interest income, depreciation and amortization and general and administrative expenses. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

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DEFINITIONS

MARCH 31, 2015

Property Status

Active Redevelopment

Represents properties that we are currently preparing for their intended use, and accordingly are capitalizing interest and other costs as of the end of the quarter.

Active New Construction

Represents properties that we are currently developing through ground up construction.

Land Bank

Represents estimates of the additional rentable square footage that we could put into service if management made the strategic election to pursue additional development. Also includes properties that may be held for future development or are currently engaged in activities related to planning, entitlement or other preparations for future construction.

Lease Type

First Generation

Leases on space which, in management’s evaluation, require significant improvements to prepare or condition the premises for its intended purpose or enhance the value of the property. This generally includes capital expenditures for development, redevelopment or repositioning a property.

Second Generation

Leases which are not considered by management to be first generation leases.

Pre-Leased

Leases on space classified as active new construction or, prior to execution, was included in the land bank and is expected to enter the Company’s operating portfolio at a future date.

Forward-Leased

Leases on space which is currently occupied and which are expected to commence upon vacancy of the existing tenants.

Recurring Capital Expenditures

Recurring capital expenditures exclude (1) items associated with the expansion of a building or its improvements, (2) renovations to a building which change the underlying classification of the building, incurred to prepare or condition the premises for its intended purpose (for example, from office to laboratory) or (3) capital improvements that represent an addition to the property rather than the replacement of property, plant or equipment.

Bond Covenants

Calculated in accordance with the covenants contained in the indenture that governs the terms of the Company’s unsecured senior notes due 2020 and supplemental and base indentures that govern the terms of the Company’s unsecured senior notes due 2016, unsecured senior notes due 2019, and unsecured senior notes due 2022, which are included as exhibits to the Company’s Forms 8-K filed with the SEC on April 30, 2010, March 30, 2011, April 23, 2014, and June 28, 2012, respectively. The covenants for the unsecured senior notes due 2020, unsecured senior notes due 2016, unsecured senior notes due 2019, and unsecured senior notes due 2022 are identical, except that the unencumbered total asset value definition for the unsecured senior notes due 2020 includes investments in unconsolidated partnerships accounted for under the equity method of accounting, whereas the unencumbered total asset value definition for the unsecured senior notes due 2016, unsecured senior notes due 2019, and unsecured senior notes due 2022 excludes such investments in unconsolidated partnerships.

Tentative Schedule for Quarterly Results

Second Quarter 2015

July 29, 2015

Third Quarter 2015

October 28, 2015

Fourth Quarter 2015

February 3, 2016

First Quarter 2016

May 4, 2016